NYSE$UNF

UniFirst Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

UniFirst reported financial results for the second quarter of fiscal 2023, showing revenue increase but operating and net income decrease.

UniFirst Corporation announced an 11.5% increase in consolidated revenues, reaching $542.7 million. However, operating income decreased by 8.4% to $20.7 million, and net income fell to $17.8 million. Diluted earnings per share also decreased to $0.95. The company's results were impacted by costs related to key initiatives and the acquisition of Clean Uniform.

  • Consolidated revenues increased by 11.5% to $542.7 million.
  • Operating income decreased by 8.4% to $20.7 million.
  • Net income decreased by 3.5% to $17.8 million.
  • Diluted earnings per share decreased by 2.1% to $0.95.

Headline financials

Total Revenue

$543M

Previous: $487M+11.5%
EPS (adj)

$1.39

Previous: $1.24+12.1%
Capital Expenditures

-$74.8M

Previous: -$60.2M-24.4%
Free Cash Flow

-$57M

Previous: -$41.7M-36.7%
Net Income

$17.8M

Previous: $18.5M-3.5%
Operating Income

$20.7M

Previous: $22.6M-8.4%
Gross Profit

$173M

Previous: $162M+6.7%
Cash & Equivalents

$244M

No prior period
Total Assets

$2.45B

No prior period

Revenue & EPS history

UniFirst · Revenue · Quarterly

$543M

Q2 2023+11.5%vs Q2 2022
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

UniFirst · $634M total across 3 segments · Q3 2026

  • Uniform & Facility Service Solutions
    $576M
  • First Aid & Safety Solutions
    $30.8M
  • Other
    $27.8M

Forward guidance

The Company now expects its revenues for fiscal 2023 to be between $2.210 billion and $2.220 billion. We further expect diluted earnings per share to be between $5.02 and $5.37.

Tailwinds

  • Revenue expected to be between $2.210 billion and $2.220 billion.
  • Diluted earnings per share expected to be between $5.02 and $5.37.
  • Includes the estimated impact of the Clean acquisition.
  • Assumes Core Laundry Operations’ operating margin at the midpoint of the range of 5.2%.
  • Assumes an effective tax rate of 25.0%.

Headwinds

  • Includes an estimate of $40.0 million of costs directly attributable to our Key Initiatives as well as the $4.0 million of Clean acquisition-related expenses.
  • These items combined to decrease the Core Laundry Operations' operating margin assumption by 2.2% and EPS by $1.76.
  • Assumes no impact from any future share buybacks.
  • Assumes no unexpected significantly adverse economic developments.
  • Acquisition-related expenses of $4.0 million, which includes the $2.0 million expensed in the second quarter of fiscal 2023.

Historical earnings impact

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

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.3%

Avg return

Earnings day

-0.5%

Avg return

5 days after

+1.9%

Avg return

30 days after

45%

30 / 66 earnings

Positive

+11.6%

Q2 2018

Best reaction

-11.8%

Q4 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026
Q2 2026+0.9%-1.3%
Q1 2026-3.3%-0.8%-0.9%
Q4 2025-6.0%-0.2%-2.4%
Q3 2025-2.4%-1.5%-1.9%
Q2 2025+1.0%-6.3%+2.6%
Q1 2025+7.8%+10.7%+7.2%
Q4 2024-0.4%-2.1%+5.4%
Q3 2024+11.0%+11.1%+23.8%
Q2 2024+3.8%+1.4%-1.7%
Q1 2024-9.5%-8.2%-3.5%
Q4 2023-0.8%-0.4%+4.4%
Q3 2023-6.3%-7.0%-6.1%
Q2 2023-10.2%-10.8%-15.3%
Q1 2023+5.3%+5.9%+7.9%
Q4 2022-3.4%-1.5%+11.4%
Q3 2022+6.7%+6.9%+21.4%
Q2 2022-3.2%-7.7%-9.5%
Q1 2022-5.8%-7.9%-14.5%
Q4 2021-6.3%-5.7%-8.8%
Q3 2021-6.4%-6.3%-9.9%
Q2 2021+1.2%-0.1%+0.9%
Q1 2021+4.9%+3.0%+7.9%
Q4 2020-11.8%-15.1%-1.2%
Q3 2020-2.0%-2.7%+4.2%
Q2 2020-7.7%-0.6%+9.8%
Q1 2020+2.0%+4.9%-0.9%
Q4 2019+4.5%+5.2%+5.9%
Q3 2019+11.3%+12.7%+17.0%
Q2 2019+10.8%+12.1%+12.7%
Q1 2019-6.6%-4.7%-4.6%
Q4 2018-8.1%-7.4%-8.4%
Q3 2018-2.5%-0.2%+1.8%
Q2 2018+11.6%+6.9%+10.4%
Q1 2018+4.3%+2.3%-2.8%
Q4 2017+0.2%+0.5%-1.0%
Q3 2017+0.9%+3.0%+2.7%
Q2 2017+3.7%+1.0%+2.3%
Q1 2017-6.9%-8.5%-11.6%
Q4 2016-9.1%-9.0%+7.3%
Q3 2016+9.7%+8.8%+10.8%
Q2 2016-3.3%
Q1 2016+0.3%
Q4 2015-5.1%
Q3 2015+4.7%
Q2 2015+3.8%
Q1 2015-0.7%
Q4 2014-1.3%
Q3 2014-2.1%
Q2 2014-5.2%
Q1 2014-1.4%
Q4 2013-0.8%
Q3 2013+2.8%
Q2 2013-1.3%
Q1 2013+8.4%
Q4 2012+0.2%
Q3 2012+0.3%
Q2 2012-2.6%
Q1 2012+1.8%
Q4 2011-0.3%
Q4 2009-0.3%
Q4 2010-0.3%
Q3 2011+1.3%
Q2 2011-0.1%
Q1 2011-5.5%
Q3 2010+3.0%
Q2 2010+0.1%

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