UniFirst Q1 Earnings Exceed Expectations

UniFirst Corp UNF reported first-quarter FY23 sales growth of 11.4% year-on-year, to $541.79 million, beating the consensus of $527.51 million.
Segment Revenue: Core Laundry Operations rose 11.3% to $477.4 million, and Specialty Garments increased 11.6% to $44.1 million.
Operating margin was 8%, and operating income for the quarter declined 3.1% to $43.4 million.
Adjusted EPS of $2.21 beat the analyst consensus of $1.94.
The company held $351.2 million in cash and equivalents as of November 26, 2022. Cash provided by operating activities for the quarter amounted to $27.6 million.
Outlook: UniFirst continues to expect FY23 revenue of $2.145 billion - $2.160 billion versus the consensus of $2.15 billion.
The company expects FY23 adjusted EPS of $7.10 - $7.50 versus the $7.21 estimate.
Price Action: UNF shares traded higher by 2.62% at $194.91 on the last check Wednesday.

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