UniFirst's Q1 revenue slightly beats estimates

Overview

• Uniform supplier's fiscal Q1 revenue rose 2.7%, slightly beating analyst expectations

• Net income and EPS declined due to growth and digital transformation investments

• Company repurchased $31.7 mln of its shares in fiscal Q1

Outlook

• UniFirst reaffirms fiscal 2026 revenue guidance of $2.475 bln to $2.495 bln

• Company expects fiscal 2026 EPS between $6.58 and $6.98

• Guidance includes $7.0 mln of costs related to Key Initiative

Result Drivers

• ORGANIC GROWTH - Revenue growth driven by new customer wins and improved retention in core Uniform & Facility Service Solutions segment

• INVESTMENTS IMPACT MARGINS - Planned investments in growth and digital transformation initiatives reduced operating margins

• FIRST AID SEGMENT GROWTH - First Aid & Safety Solutions segment revenue rose 15.3% due to investments in First Aid van business

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy."

• Wall Street's median 12-month price target for UniFirst Corp is $175.00, about 13.9% below its January 6 closing price of $203.15

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nGNX90706Z

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