UniFirst (NYSE: UNF) has confirmed the release date for its fiscal Q1 2022 earnings which will be on Wednesday, January 5, 2021, before the market open.
What to look for
The company is upbeat about its revenue and earnings results for the quarter under review and fiscal 2022. CEO Steve Sintros stated that they expect fiscal 2022 revenue of between $1.92 and $1.645 billion and diluted earnings of around $5.7 to $6.1 per share. The guidance includes transitionary investment costs of $38 million attributable to major initiatives.
Earnings: Stockearning’s Estimated EPS for fiscal Q1 2022 is expected to be around $2.15 per share. The company reported its Q4 2021 earnings on October 19, 2021, and it had EPS of $1.82 missing in consensus estimates by $0.02 per share. Historical EPS Performance shows that in the past 12 quarters, the company has topped estimates nine times (75) and missed thrice (25%).
Revenue: The company expects to announce revenue of $475.55 million for fiscal Q1 2022 relative to $446.85 million a year ago, representing a YoY increase of 6.4%. The company is expected to post revenue of $1.93 billion for the full year, and analysts expect fiscal 2023 sales of between $2.03 billion and $2.04 billion. In the fourth quarter, the company had revenue of $465.28 million.
Stock movement: UniFirst shares have lost 2.5% since the company released its last quarter earnings. Interestingly, UNF shares have been UP 28 times out of the past 47 quarters. So, the historical price reaction suggests a 59% probability of the share price going UP once UNF reports its fiscal Q1 2022 earnings. According to the Stockearning algorithm, the predicted first-day move is 4%, while the predicted move on the seventh day is 5%.
What analysts are saying
Baird analyst Andrew Wittmann downgraded the stock from Buy to Hold rating but raised the price target from $240 to $248. Wittmann cites valuation for the shares downgrade above the target price. The analyst said a Q1 uniform rental survey indicated some improvement from the fourth quarter, but the pricing deteriorated further. In addition, Wittmann told investors that a large proportion of responders witnessed the quarter coming below internal expectations.
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