Aramark Stock Falls As Q3 Revenue Misses Estimate

Aramark ARMK reported third-quarter FY21 revenue growth of 38.5% year-on-year, to $2.98 billion, missing the analyst consensus of $3.06 billion.
The revenue in the FSS U.S. segment rose 55% Y/Y, FSS International increased 41%, and Uniform & Career Apparel grew 6%.
The operating margin was 2.5%, and operating income for the quarter was $74.2 million.
The company held $1.9 billion in cash and equivalents as of July 2, 2021.
Net cash provided by operating activities amounted to $12 million and use of $89 million free cash flow.
Adjusted EPS of $0.03 beat the analyst consensus of $0.02.
The company's Board approved a quarterly dividend of $0.11 per share of common stock, payable on September 8, 2021, to stockholders of record on August 25, 2021.
Outlook: Aramark sees continued organic revenue improvement in Q4, reaching 80% - 85% of 2019 levels.
Price Action: ARMK shares traded lower by 3.53% at $33.66 on the last check Tuesday.