Hot Stock to watch: UniFirst Corp (NYSE: UNF)

Free $100 Forex No-Deposit Bonus

UniFirst Corp (NYSE: UNF) stock rose 6.27% on January 8th, 2020 (Source: Google finance) after the company posted better than expected results for the first quarter of FY 20. The company has reported operating income and net income of $60.1 million and $48.2 million respectively, which represents the growth of 19.2% and 25.9%, when compared to the first quarter of last year. The first quarter results were mainly influenced due to the core laundry operations, which make up approximately 90% of the overall revenues and operating income. Cash provided by operating activities for the first quarter of the year 2020 was $52.4 million, an increase of $20.2 million from the first quarter of fiscal 2019.

UNF in the first quarter of FY 20 has reported the adjusted earnings per share of $2.52, beating the analysts’ estimates for the adjusted earnings per share of $2.01, according to the analysts polled by Thomson Reuters. The company had reported the adjusted revenue growth of 6.1 percent to $465.4 million in the first quarter of FY 20, beating the analysts’ estimates for revenue of $459.56 million.

Moreover, the core laundry operations revenues rose 6.6% in the quarter to $416.3 million from the first quarter of 2019. Core laundry organic growth was 6%. During the quarter, the organic growth came mainly from the solid new account sales and improved customer retention in fiscal 2019, as well as the improved collection of merchandise recovery charges. The revenues from the Specialty Garment segment fell by 3% to $33.4 million in the first quarter. This decline was mainly due to decreased outage activity in the US and Canadian Nuclear Operations, which was partially offset by strong growth in the cleanroom operations. First Aid segments revenues grew by 15.2% to $15.7 million and the segment’s operating income rose by 19.9% to $1.4 million.

UNF expects fiscal 2020 revenues to be in the range of $1.860 billion and $1.872 billion and full year diluted earnings per share to be in the range of $7.60 and $7.92. While the analysts polled by Thomson Reuters project the company to report profit per share of $8.02 on revenue of $1.86 billion. The company has reduced the high end of its previous guidance for revenue partially due to reduced business activity and wearer levels in the energy dependent markets. The company’s fiscal 2020 will contain one less week compared to fiscal 2019.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.