UniFirst Q4 Profit Increases, Projects Decline In FY17 Earnings

(RTTNews) - UniFirst Corp. (UNF) Wednesday announced an increase in fourth quarter net income to $35.49 million from $28.94 million in the prior year. On a per share basis, earnings were $1.74, up from $1.43 last year. Adjusted earnings were $25.8 million or $1.27 per share.

On average, 6 analysts polled by Thomson Reuters expected the company to earn $1.23 per share. Analysts estimates usually exclude special items.

The company recorded a growth of 1.3 percent in fourth quarter revenue to $363.76 million from $359.21 million in the prior year. Wall Street was expecting $362.62 million.

Looking ahead to the fiscal 2017, the company expects revenue between $1.55 and $1.565 billion and earnings per share between $5 and $5.14 per share. Analysts are looking for $5.85 per share.

The company said the projected decline in its earnings next year is primarily the result of the slower top line growth recently been experiencing coupled with increases in labor and labor related costs as well as the impact of other investments.

The guidance includes the results of Arrow Uniform, the acquisition which was completed in late September 2016. The Company expects this acquisition to add between $62 million and $65 million to its annual revenues and that it will be dilutive to fiscal 2017 earnings, partially due to non-cash purchase accounting charges.