Aramark Services (NYSE: ARMK) reported Q1 EPS of $0.62, $0.01 better than the analyst estimate of $0.61. Revenue for the quarter came in at $4.25 billion versus the consensus estimate of $4.31 billion.

Q1 SUMMARY

Year-over-year GAAP results impacted by the prior year divestiture of the Healthcare Technologies business

• Revenue (0.3)%; Organic Revenue +1.6%
  • Organic revenue growth across segments
  • Reflects strategic exit of non-core custodial accounts in Europe late last fiscal year
• Operating Income (32)%; Adjusted Operating Income (AOI) (2)%1
  • Initiated planned targeted investments to accelerate future revenue growth
• EPS (42)% at $0.57; Adjusted EPS unchanged1 at $0.62
• Recently Refinanced $900 million 2024 Debt Maturity
• Strengthens balance sheet and improves financial flexibility

"Our financial performance in the quarter largely materialized as expected and reflects the early actions of our strategies to unlock the economic potential of the business," said John Zillmer, Aramark's Chief Executive Officer. "In just a few short months, we have mobilized strategic leadership changes and targeted investments, as well as realigned resources to more directly support our field organization and clients—all of which creates catalysts to drive future growth in the business."

BUSINESS UPDATE

The Company is currently activating strategies to accelerate future revenue growth and unlock the economic potential of the business. These actions include fostering a hospitality culture, aligning leadership and operational resources, as well as initiating targeted investments that will support new account sales efforts and client retention; enhanced product and service offerings; and value-added innovation and technology—all executed with a commitment to drive long-term shareholder value.

"Since joining Aramark a few weeks ago, I have spent time immersing myself in the organization and have already confirmed my initial belief in the growth potential for the business," said Tom Ondrof, Aramark's Chief Financial Officer. "While appreciating the immediate work ahead of us, I am confident that we will execute over time on our actions and position Aramark for sustained excellence. As these strategies are implemented, the Company maintains its near-term financial performance outlook for Fiscal 2020."

For earnings history and earnings-related data on Aramark Services (ARMK) click here.