NYSE$VSTS
Vestis Corp · Q2 2024 earnings
Q2 2024 earnings · · Investor relations
Briefing
Reported Q2 2024 results, showing revenue increase and updated full-year outlook.
Vestis Corporation reported a 0.9% increase in revenue to $705 million for Q2 2024. Despite a decrease in operating income and adjusted EBITDA, the company demonstrated strong cash flow generation, with operating cash flow up 85% and free cash flow up 107% year-over-year. The company updated its fiscal year 2024 outlook, expecting revenue growth in the range of -1% to 0% and adjusted EBITDA margin between 12.0% and 12.4%.
- Revenue increased by 0.9% year-over-year to $705 million, or 2.8% excluding FX impact and prior year temporary energy fee.
- Operating income was $43 million, representing 6.1% of revenue.
- Operating cash flow reached $127.5 million year-to-date, an 85% increase year-over-year.
- Free cash flow totaled $97.7 million year-to-date, a 107% increase year-over-year.
Headline financials
Revenue & EPS history
Vestis · Revenue · Quarterly
$705M
Forward guidance
Vestis expects fiscal year 2024 revenue growth to be in the range of -1% to 0% and adjusted EBITDA margin between 12.0% and 12.4%.
Tailwinds
- Actively pursuing a portfolio of cost efficiency programs.
- Accelerating logistics and merchandise optimization.
- Identifying and implementing the optimal organization structure to accelerate growth.
- Disciplined capital allocation with deleveraging as a priority.
- Expect strong free cash flow conversion and anticipate a ratio of free cash flow to net income greater than or equal to 100%.
Headwinds
- Expect to deliver fiscal 2024 revenue growth in the range of (1)% to 0%.
- Adjusted EBITDA margin is now expected to be between 12.0% and 12.4%.
- Continue to expect $15 to $18 million in incremental public company costs in the period.
- Results in the quarter and outlook for the year are not in line with expectations
- Navigating short-term challenges.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 13 quarterly earnings reports · overlaid with Q2 2024
-4.2%
Avg return
Earnings day
-4.1%
Avg return
5 days after
-2.3%
Avg return
30 days after
43%
6 / 14 earnings
Positive
+20.4%
Q4 2024
Best reaction
-49.1%
Q2 2024
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q2 2026 | -0.3% | +1.7% | +10.2% | |
| Q1 2026 | +16.1% | +5.2% | +2.9% | |
| Q4 2025 | -7.3% | +4.2% | -0.7% | |
| Q3 2025 | -5.8% | -25.9% | -23.9% | |
| Q2 2025 | -37.5% | -24.8% | -27.8% | |
| Q1 2025 | -11.7% | -14.3% | -25.2% | |
| Q4 2022 | +4.4% | +3.6% | +4.9% | |
| Q4 2024 | +20.4% | +22.7% | +23.1% | |
| Q3 2024 | +2.2% | +0.7% | +15.4% | |
| Q2 2023 | +13.2% | +20.0% | +19.7% | |
| Q2 2024 | -49.1% | -44.6% | -33.3% | |
| Q1 2023 | -3.5% | -5.5% | -7.3% | |
| Q1 2024 | -9.8% | -13.0% | -16.4% | |
| Q4 2023 | +9.4% | +12.2% | +26.3% | |
| Q3 2022 | — | — | — | |
| Q2 2022 | — | — | — | |
| Q1 2022 | — | — | — |
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