Aramark (ARMK) is set to report fourth quarter earnings before the market opens on Monday, November 17, and Wall Street's most accurate forecasters have been busy adjusting their expectations.
The Philadelphia-based facilities services company is expected to post quarterly earnings of 65 cents per share, which would represent a solid jump from the 54 cents per share reported in the same period last year. On the revenue side, analysts are looking for $5.16 billion compared to $4.42 billion a year ago.
The setup for these results isn't exactly pristine. Back on August 5, Aramark disappointed investors with weaker-than-expected sales for the third quarter, and the stock has been feeling the effects. Shares closed Friday at $38.03, down 1.3% for the session.
So what are Wall Street's best-performing analysts saying ahead of the print? Here's how the top forecasters have positioned themselves recently:
UBS analyst Joshua Chan, who maintains a 55% accuracy rate, stuck with his Buy rating on October 1 but trimmed his price target from $46 down to $45. A modest adjustment, but worth noting given the timing.
Baird's Andrew Wittmann made a bolder move back on August 6, right after those disappointing third quarter sales. He upgraded Aramark from Neutral to Outperform and raised his price target from $43 to $47. That's particularly interesting given the timing, and Wittmann brings a strong 78% accuracy rate to the table.
Morgan Stanley's Toni Kaplan kept an Equal-Weight rating on June 30 but bumped the price target from $42 to $44. Kaplan's accuracy rate sits at a respectable 65%.
Finally, Citigroup analyst James Ainley reinstated coverage with a Buy rating and a $48 price target back in February. Ainley's track record shows a 69% accuracy rate.
The range of price targets from these top analysts—$44 to $48—suggests a decent upside from Friday's close of $38.03, though opinions on the stock's trajectory clearly vary. Monday morning's earnings report should provide some clarity on whether the third quarter weakness was a blip or a sign of deeper challenges.
