UniFirst Q3 2022 Earnings Report
Key Takeaways
UniFirst Corporation reported a 10.2% increase in consolidated revenues for the third quarter, reaching $511.5 million. However, operating income decreased by 37.8% to $33.7 million, and net income decreased by 40.3% to $25.1 million. Diluted earnings per share decreased to $1.33. The results included $11.4 million of costs related to key initiatives. The company expects revenues for fiscal year 2022 to be between $1.993 billion and $2.0 billion, and diluted earnings per share to be between $5.40 and $5.60.
Consolidated revenues increased by 10.2% to $511.5 million.
Operating income decreased by 37.8% to $33.7 million.
Net income decreased by 40.3% to $25.1 million.
Diluted earnings per share decreased to $1.33.
UniFirst
UniFirst
UniFirst Revenue by Segment
Forward Guidance
The company now expects revenues for fiscal 2022 to be between $1.993 billion and $2.0 billion. They further expect diluted earnings per share to be between $5.40 and $5.60. Adjusted diluted earnings per share is now expected to be between $6.65 and $6.85.
Positive Outlook
- Revenues for fiscal 2022 expected to be between $1.993 billion and $2.0 billion.
- Diluted earnings per share expected to be between $5.40 and $5.60.
- Core Laundry Operations’ adjusted operating margin at the midpoint of the range is now 8.3%.
- Adjusted tax rate for fiscal 2022 is projected to be 24.4%.
- Adjusted diluted earnings per share is now expected to be between $6.65 and $6.85.
Challenges Ahead
- Guidance does not include the impact of any future share buybacks.
- Guidance does not include the impact of unexpected significantly adverse economic developments.
- Includes a revised estimate of $32.0 million of costs directly attributable to key initiatives that will be expensed in fiscal 2022.
- Margin pressure influenced by an increasingly inflationary environment.
- Challenging employment landscape