UniFirst Q3: 12.7% Topline Growth, Bottomline Miss, Mixed Outlook & More

Unifirst Corporation UNF reported third-quarter FY23 sales growth of 12.7% year-on-year, to $576.67 million, beating the consensus of $564.18 million.

Adjusted EPS of $1.66 missed the analyst consensus of $1.79.

Segment Revenue: Core Laundry Operations increased 11.5% to $501.7 million, and Specialty Garments revenues were $49.4 million, an increase of 19.9%.

The company's operating income was $33.4 million in the quarter, a decrease of 0.9%. Net income decreased by 3.2% to $24.3 million.

The company held $69.3 million in cash and equivalents as of May 27, 2023. The company had no long-term debt outstanding.

Steven Sintros, UniFirst President and Chief Executive Officer, said, "We are pleased with our strong top-line performance in the quarter, but continue to be focused as a company on mitigating the cost pressures impacting our operations."

Outlook: UniFirst raised FY23 revenue guidance. The company expects revenues of $2.22 billion-$2.23 billion (prior view $2.210 billion - $2.220 billion) versus a $2.22 billion estimate.

UniFirst continues to expect EPS of $5.02-$5.37 versus a $7.13 estimate.

Price Action: UNF shares traded lower by 5.6% at $157.65 on the last check Wednesday.