UniFirst Q2 Earnings Report: Key Things to Watch

UniFirst, a provider of workplace uniforms, is set to release its second-quarter earnings report this week. In the previous quarter, the company met analysts’ revenue expectations by reporting revenues of $602.2 million, showing a 1.9% increase year on year. UniFirst had a strong quarter, surpassing analysts’ full-year EPS guidance estimates and beating EPS estimates as well.

For the upcoming quarter, analysts are predicting a 1.9% year-on-year revenue growth for UniFirst, reaching $614.7 million, which is a slower rate compared to the 4.6% increase in the same quarter last year. Adjusted earnings are expected to be at $2.09 per share. Analysts who cover the company have maintained their estimates over the past month, indicating confidence in UniFirst’s performance leading up to the earnings report.

In the past two years, UniFirst has missed Wall Street’s revenue estimates twice. By looking at other companies in the business services & supplies sector, such as MillerKnoll and Steelcase, that have already released their Q2 results, it gives some insight into what to expect. MillerKnoll saw a year-on-year revenue growth of 8.2%, surpassing analysts’ projections by 5.3%, while Steelcase reported a revenue increase of 7.1%, exceeding estimates by 2.5%. Following their results, MillerKnoll’s stock rose by 12.2% and Steelcase also saw a 2.4% increase.

Overall, there has been a positive sentiment among investors in the business services & supplies sector, with stock prices rising by an average of 5.3% over the last month. In comparison, UniFirst’s stock price remained stable during the same period, with an average analyst price target of $181.67, slightly below the current share price of $188.74.

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As UniFirst prepares to announce its Q2 earnings, it will be interesting to see how the company performs and whether it can meet or exceed analyst expectations once again. Investors will be keeping a close eye on the results to evaluate UniFirst’s financial health and future prospects in the workplace uniform industry.