Earning Date, Transcript Summary & Report

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VSTS Earnings Prediction

The chart below shows how VSTS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VSTS sees a +19.54% change in stock price 10 days leading up to the earnings, and a +7.02% change 10 days following the report. On the earnings day itself, the stock moves by -10.12%. This data can give you a slight idea of what to expect for the next quarter's release.

VSTS Key Earning Data

2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
683.78M
-4.76%
-0.07%
Gross Margin
22.17%
-11.67%
-6.18%
Operating Margin
5.07%
-24.22%
3.26%
Net Margin
0.12%
-92.98%
-135.29%
EPS
0.01
-88.89%
-150.00%
No Data Available

VSTS Earnings Analysis

Vestis Corp Corporation (VSTS.N) Earnings Conference Call

Positive

  • Stable Q1 Revenue: Q1 revenue of $684 million was flat sequentially from Q4 2024, indicating stability in revenue generation.

  • Adjusted EBITDA Increase: Adjusted EBITDA for Q1 was $81.2 million, reflecting a 1% sequential increase from Q4 2024, showcasing improved profitability.

  • Field Sales Productivity Improvement: Year-over-year productivity in field sales improved by 20%, with some regions achieving a 40% increase, indicating enhanced sales efficiency.

  • Customer Retention Improvement: Customer retention rate improved to 92.9%, up 30 basis points year over year, demonstrating strong customer loyalty and satisfaction.

  • Future Revenue and EBITDA Growth: The company expects revenue growth of 3% to 4% and EBITDA growth approaching or exceeding 10% in the second half of FY '25, indicating positive future performance.

Negative

  • Revenue Performance Decline: Q1 revenue of $684 million was flat sequentially from Q4 2024, but down 2.8% year over year on a normalized constant currency basis, indicating a decline in overall sales performance.

  • Q1 Adjusted EBITDA Decline: Adjusted EBITDA for Q1 was $81.2 million, a decrease of approximately $17 million from Q1 of fiscal '24, reflecting challenges in profitability despite slight sequential improvement.

  • EBITDA Margin Decline: Q1 EBITDA margin was 11.9%, down 180 basis points year over year, highlighting a significant reduction in operational efficiency compared to the previous year.

  • Decline in Cash Flow: Cash flow from operations was only $4 million in Q1, a stark decline from $52 million in the same quarter last year, primarily due to lower EBITDA and timing issues with cash collections.

  • Currency Exchange Impact: The company experienced a 20 basis point headwind from unfavorable Canadian dollar exchange rates, which is expected to continue impacting revenue as the year progresses.

Key Financial Performance iconKey Financial Performance
Operating Highlights iconOperating Highlights
Risks or Challenges iconRisks or Challenges
Strategic Initiatives & Outlook iconStrategic Initiatives & Outlook
Shareholder Return Plan iconShareholder Return Plan

VSTS FAQs

How does VSTS typically perform around its earnings report dates?

VSTS's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a +19.54% change leading up to the report and a +7.02% change in the 10 days following the release.

Is Vestis Corp (VSTS) Q1 2025 Earnings Call Summary positive or negative?

How can historical earnings data help predict future stock performance?

VSTS Earnings Deck

Earnings call transcript: Vestis Corp Q1 2025 misses EPS forecast, stock drops

VSTS Earning Call Sentiment

Earnings call transcript: Vestis Corp Q1 2025 misses EPS forecast, stock drops

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VSTS.N

-8.74%
Positive
The earnings call indicates mixed signals: there is a decline in revenue and profitability challenges, but also positive efforts in pricing and customer retention. The Q&A highlights improvements in service and retention, yet management's vagueness on cost initiatives raises concerns. The market cap suggests a moderate reaction, aligning with the neutral sentiment given the balance of positive and negative factors.