UniFirst Corp (UNF) Tops Q2 EPS by 25c, Beats on Revenues; Offers FY18 EPS/Revenue Outlook Above Consensus

Note: EPS may not be comparable

UniFirst Corp (NYSE: UNF) reported Q2 EPS of $1.38, $0.25 better than the analyst estimate of $1.13. Revenue for the quarter came in at $419.3 million versus the consensus estimate of $404.53 million.

Outlook

The Company now expects that its fiscal 2018 revenues will be between $1.660 billion and $1.670 billion, which includes the benefit of a small acquisition the Company completed in the Memphis, TN market in the second quarter of fiscal 2018 that is anticipated to contribute approximately $5.0 million in additional revenue to fiscal 2018. In addition, this top-line outlook includes an increase of approximately $7.0 million related to our Specialty Garments business compared to our previously communicated guidance, due to the segment's strong second quarter performance as well as its revised forecast for the remainder of the year.

Full year diluted earnings per share is now expected to be between $7.45 and $7.65. The revised diluted earnings per share guidance includes the impact of the Tax Reform as well as the $146.0 million share repurchase, which is anticipated to result in an estimated $0.15 increase to our 2018 earnings per share. This outlook assumes an effective tax rate for the second half of fiscal 2018 of 27.5% and does not include any further tax benefits related to the adoption of ASU 2016-09.

GUIDANCE:

UniFirst Corp sees FY2018 EPS of $7.45-$7.65, versus the consensus of $5.56. UniFirst Corp sees FY2018 revenue of $1.66-1.67 billion, versus the consensus of $1.65 billion.

For earnings history and earnings-related data on UniFirst Corp (UNF) click here.

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