NYSE$VSTS
Vestis Corp · Q3 2023 earnings
Q3 2023 earnings · · After market close · Investor relations
Briefing
Vestis reported Q3 2024 revenue of $698 million, down 1.6% year-over-year, with adjusted EBITDA of $87 million.
Vestis Corporation announced results for the third quarter ended June 28, 2024. Revenue declined modestly while adjusted EBITDA margin contracted due to higher public company costs and lost business. The company entered into a $250 million accounts receivable securitization facility post-quarter to reduce net debt and reiterated its fiscal 2024 outlook.
- Revenue of $698 million decreased 1.6% year-over-year (1.4% excluding FX).
- Adjusted EBITDA was $87 million (12.4% margin), down 260 bps from prior year.
- Net leverage stood at 3.98x; pro forma net leverage would be 3.33x after A/R facility proceeds.
- Fiscal 2024 revenue growth guidance maintained at (1)% to 0%, with adjusted EBITDA margin toward the higher end of 12.0%-12.4%.
Headline financials
Revenue & EPS history
Vestis · Revenue · Quarterly
$698M
Revenue by segment
Vestis · $698M total across 2 segments · Q3 2023
- United States$637M—91.2%
- Canada$61.4M—8.8%
Forward guidance
Fiscal 2024 revenue growth expected in the range of (1)% to 0%; adjusted EBITDA margin toward the higher end of 12.0% to 12.4%.
Tailwinds
- Strong free cash flow conversion expected (>=100% of net income).
- Deleveraging remains a priority via A/R facility.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 13 quarterly earnings reports
-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 |
|---|---|---|---|---|
| Q3 2023 | — | — | — | |
| 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 | — | — | — |
Discussion
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