NYSE$ARMK

Aramark · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Revenue surpassed pre-COVID levels across all three business segments, driven by record-level net growth, pricing, and ongoing base recovery. Operating income and adjusted operating income increased due to higher sales volume and operational cost management. The company raised its fiscal 2022 outlook for organic revenue growth and annualized net new business.

Aramark reported strong Q3 2022 results, with revenue surpassing pre-COVID levels across all business segments. The company saw significant increases in operating income and adjusted operating income, driven by revenue growth and cost management. Aramark raised its fiscal 2022 outlook for organic revenue growth and annualized net new business.

  • Revenue increased by 38%, with organic revenue up by 39%, surpassing pre-COVID levels across all three business segments.
  • Operating Income increased by 99%, and Adjusted Operating Income (AOI) increased by 73%, driven by higher sales volume and operational cost management.
  • EPS increased to $0.16, and Adjusted EPS increased to $0.25.
  • Fiscal 2022 outlook was raised for Organic Revenue Growth to +31% to +32% and Annualized Net New Business to $725 million to $775 million.

Headline financials

Total Revenue

$4.13B

Previous: $2.98B+38.4%
EPS (adj)

$0.25

Previous: $0.03+733.3%
Organic Revenue Growth

39.0%

No prior period
Free Cash Flow

$40.3M

Previous: $32.6M+23.9%
Net Income

$40.3M

Previous: $32.6M+23.9%
Operating Income

$148M

Previous: $74.2M+99.2%
Gross Profit

-$3.88B

Previous: -$2.82B-37.5%
Cash & Equivalents

$439M

Previous: $483M-9.2%
Total Assets

$15B

Previous: $14.1B+6.7%
Stock-Based Comp

$23.9M

Previous: $17.8M+34.6%

Revenue & EPS history

Aramark · Revenue · Quarterly

$4.13B

Q3 2022+38.4%vs Q3 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

Aramark provided full-year performance expectations for fiscal 2022 and expects organic revenue growth of +31% to +32%, Q4 at 107% to 108% of pre-COVID levels, Annualized Net New Business of $725 million to $775 million, AOI Margin at or very near 5%, Q4 margin of mid-6%, and Free Cash Flow of $300 million to $350 million.

Tailwinds

  • Organic Revenue Growth of +31% to +32%
  • Q4 at 107% to 108% of pre-COVID levels
  • Annualized Net New Business of $725 million to $775 million
  • AOI Margin at or very near 5%
  • Q4 margin of mid-6%

Headwinds

  • Lingering impact of COVID-19 on Aramark and its clients
  • Numerous evolving factors that are difficult to accurately predict
  • Risk Factors set forth in the Company's filings with the United States Securities and Exchange Commission
  • Inherent difficulty in forecasting and quantifying certain amounts that are necessary for reconciliations
  • Adjustments that could be made for the impact of the change in fair value related to certain gasoline and diesel agreements and other charges and the effect of currency translation

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+0.4%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+3.4%

Avg return

30 days after

50%

27 / 54 earnings

Positive

+9.8%

Q2 2025

Best reaction

-9.0%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+1.1%+19.3%+22.4%
Q1 2026+5.6%+0.5%+3.1%
Q4 2025-5.2%-0.5%-0.7%
Q2 2025+9.8%+12.2%+16.2%
Q1 2025-2.1%-0.9%-7.6%
Q4 2024-2.8%-4.5%+4.2%
Q3 2024+1.8%+4.4%+13.0%
Q2 2024+0.8%+5.3%+3.4%
Q1 2024-1.8%+3.7%+7.5%
Q4 2023-5.2%-2.8%-3.3%
Q3 2023+9.0%+3.2%-3.4%
Q2 2023+7.2%+8.9%+19.0%
Q1 2023-9.0%-12.3%-18.3%
Q4 2022+4.2%+4.6%+7.4%
Q3 2022+3.1%+5.8%+4.7%
Q2 2022-4.4%-1.8%-1.5%
Q1 2022+3.3%-1.4%-4.3%
Q4 2021+0.3%-3.9%-12.2%
Q3 2021+0.5%+1.5%-4.7%
Q2 2021-3.5%+3.9%-0.3%
Q1 2021-0.7%-2.7%+12.5%
Q4 2020-3.3%+1.0%+7.9%
Q3 2020+1.8%+12.4%+37.7%
Q2 2020-7.0%+2.1%+10.5%
Q1 2020-1.9%-7.0%-23.3%
Q4 2019-0.4%-1.9%-0.5%
Q3 2019+8.0%+9.2%+20.4%
Q2 2019-2.6%+0.0%+12.4%
Q1 2019-1.4%-5.4%-11.4%
Q4 2018+2.4%+6.6%-5.4%
Q3 2018+5.1%+4.6%+6.0%
Q2 2018+1.1%+2.6%+6.1%
Q1 2018-4.8%-7.1%-6.8%
Q4 2017-7.0%-4.7%-2.0%
Q3 2017+0.7%-1.1%+1.3%
Q2 2017+2.9%+1.5%+9.1%
Q1 2017+6.0%+6.1%+8.5%
Q4 2016-8.7%-6.6%-0.6%
Q3 2016+5.5%+5.0%+4.3%
Q2 2016-3.2%
Q1 2016-0.6%
Q4 2015+9.2%
Q3 2015-0.1%
Q2 2015+1.6%
Q1 2015-3.4%
Q4 2012-1.5%
Q4 2014+4.3%
Q3 2013-0.3%
Q3 2014-0.3%
Q2 2013-2.0%
Q2 2014-2.0%
Q4 2013+3.4%
Q1 2014+3.4%
Q1 2013+3.4%
Q3 2012

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