The chart below shows how UNF performed 10 days before and after its earnings report, based on data from the past quarters. Typically, UNF sees a -0.45% change in stock price 10 days leading up to the earnings, and a -0.30% change 10 days following the report. On the earnings day itself, the stock moves by +0.04%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
First Quarter Revenue Increase: First quarter revenues were $604.9 million, an increase of 1.9% from fiscal 2024.
Income and EBITDA Growth: Operating income and adjusted EBITDA increased by 4.5% and 5.9% respectively compared to the first quarter of fiscal 2024.
Quarterly Net Income Increase: Net income for the quarter increased to $43.1 million or $2.31 per diluted share, from $42.3 million or $2.26 per diluted share.
EBITDA Increase Analysis: Consolidated adjusted EBITDA increased to $94 million from $88.7 million in the prior year, or 5.9%.
Quarterly Revenue Increase: Core laundry revenues for the quarter were $532.7 million, an increase of 1.7% from the first quarter of 2024.
Negative
Revenue Stagnation Analysis: First quarter revenues were $604.9 million, a slight increase of 1.9% from fiscal 2024, indicating a stagnation in growth.
Inflation Impact on Retention: The market has emerged from a period of significantly elevated inflation levels, which has had a corresponding impact on our retention rates, suggesting challenges in customer loyalty.
Sales Performance and Customer Decline: Sales organization continued to perform well, but net wearer levels for our existing customers declined during the quarter, showing some incremental weakness compared to a year ago.
Quarterly Revenue Increase: Core laundry operations revenues for the quarter were $532.7 million, an increase of only 1.7% from the first quarter of 2024, reflecting limited growth potential.
EBITDA Margin Decline: The adjusted EBITDA margin decreased by 0.5% compared to the previous year, indicating a decline in operational efficiency.