G&K Services Beats Estimates With 41 Cent Adjusted EPS (GKSR)

Minnetonka, Minnesota-based G&K Services, Inc. GKSR on Tuesday morning released financial results that beat Wall Street expectations. G&K Services, Inc reported that its 2nd quarter net income rose to $8.7 million, or 47 cents per share, up from $7.2 million, or 39 cents per share, a year earlier. Excluding special items, the company earned 41 cents per share. G&K Services, Inc reported revenue of $204.1 million, down from $206.4 million a year earlier. A poll of analysts conducted by Thomson Reuters showed an average Wall Street estimate of expected earnings of 37 cents per share, on revenue of $200.45 million. Chief executive officer Douglas A. Milroy said, “For the quarter, we again drove increased customer retention and sales productivity, which helped fuel a significant improvement in our rental organic growth rate. This improvement, along with lower costs and increased location profitability, are all contributing to our expanding operating margins.” The company raised its 2011 adjusted earnings guidance to be in the range of $1.50 to $1.65 per share. G&K Services, Inc. (GKSR) ended the previous trading session at $31.33 per share. Analysts covering the company's stock have a consensus price target of $32.80 per share. G&K Services, Inc is a market leader in branded identity apparel programs and facility services in the United States, and is the largest such provider in Canada. Read more from Benzinga's Company news.