Where the UniFirst Corporation (NYSE: UNF) stock Worth

On 31 Jan 2020, UniFirst Corporation (NYSE: UNF) changed -1.10% to recent value of $203.93. The stock transacted 83439 shares during most recent day however it has an average volume of 75.51K shares. It spotted trading -6.41% off 52-week high price. On the other end, the stock has been noted 52.01% away from the low price over the last 52-weeks.

UniFirst Corporation (UNF) recently stated results for its first quarter ended November 30, 2019 as contrast to the corresponding period in the previous fiscal year:

Q1 2020 Financial Highlights

Consolidated revenues for the first quarter increased 6.1% to $465.4M.

Operating income was $60.1M, a raise of 19.2%.

The effective tax rate for the quarter reduced to 22.1% from 26.2%.

Net income in the quarter increased to $48.2M from $38.3M, or 25.9%.

Diluted earnings per share increased to $2.52 from $1.99, or 26.6%.

Section Reporting Highlights

Core Laundry Operations

  • Revenues for the quarter increased 6.6% to $416.3M.
  • Organic growth, which excludes the effect of acquisitions as well as fluctuations in the Canadian dollar, was 6.0% and benefited by about 0.7% from the impact of certain revenue adjustments related to reserves as well as the timing of revenues about the Thanksgiving holiday.
  • Operating margin increased to 12.9% from 11.5%. This increase was primarily Because of lower energy, selling payroll and depreciation and amortization as a percentage of revenues as well as the effect of the revenue adjustments discussed above. In addition, several other costs trended favorably as a percentage of revenues Because of the strong revenue growth in the quarter.  These benefits were partially offset by an unfavorable comparison with previous year Because of a $3.0M pre-tax gain ($0.11 per diluted share) from the settlement of environmental litigation recognized in the first quarter of 2019.

Specialty Garments

  • Revenues for the quarter were $33.4M, a decrease of 3.0%. This decrease was primarily Because of reduced outage activity in the US and Canadian nuclear operations which was partially offset by strong growth in the cleanroom operations.
  • Operating margin increased to 14.6% from 13.0%. This increase was primarily Because of lower merchandise and production payroll costs as a percentage of revenues partially offset by higher casualty claims expense as a percentage of revenues.
  • Specialty Garments consists of nuclear decontamination and cleanroom operations and its results can vary importantly Because of seasonality and the timing of reactor outages and projects.

Capital Allocation

  • Cash, cash equivalents and short-term investments totaled $356.6M as of November 30, 2019.
  • The Company had no long-term debt outstanding as of November 30, 2019.
  • Under its before reported stock repurchase program, the Company repurchased 50,600 shares of ordinary stock for a total of $10.0M during its first fiscal quarter of 2020.
  • Weighted average shares outstanding – Diluted reduced 0.9% to 19.1M shares.

Financial Outlook

Mr. Sintros continued, “At this time, we believe that our revenues for fiscal 2020 will be between $1.860B and $1.872B and full year diluted earnings per share to be between $7.60 and $7.92.  We have reduced the high end of our before provided revenue outlook partially Because of reduced business activity and wearer levels in the energy dependent markets that we service.  This guidance does not assume any important further deterioration in the energy sector or the overall economy.   As a reminder, our fiscal 2020 will contain one less week contrast to fiscal 2019.”

UNF has a gross margin of 37.30% and an operating margin of 13.20% while its profit margin remained 10.30% for the last 12 months. Its earnings per share (EPS) expected to touch remained 29.60% for this year while earning per share for the next 5-years is expected to reach at 10.00%.  The company has 18.75M of outstanding shares and 15.13M shares were floated in the market. According to the most recent quarter its current ratio was 4.6 that represents company’s ability to meet its current financial obligations. The price moved ahead of -2.44% from the mean of 20 days, -1.76% from mean of 50 days SMA and performed 7.23% from mean of 200 days price. Company’s performance for the week was -3.12%, 0.97% for month and YTD performance remained 0.97%.

 

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