Why Uniform & Workwear Company UniFirst Shares Are Dipping Today
Portfolio Pulse from Lekha Gupta
UniFirst Corp (NYSE:UNF) shares fell after reporting Q1 FY24 results with higher sales and adjusted EPS beating consensus, but the company expects to hit the lower end of its FY24 revenue guidance. Costs related to system upgrades and branding initiatives impacted operating income and EBITDA. The company has a strong balance sheet with no long-term debt and has authorized a new $100 million share repurchase program, with $99.7 million remaining after initial buybacks. UniFirst also increased its quarterly dividends.
January 03, 2024 | 3:46 pm
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UniFirst reported strong Q1 FY24 results with sales and EPS above consensus, but shares dropped due to cautious revenue outlook and costs from system upgrades. The company has no debt and initiated a new share buyback program and increased dividends.
Despite the positive earnings report, the cautious revenue outlook for FY24 and the recent costs incurred for system upgrades have likely led to the decline in share price. The strong balance sheet and shareholder-friendly actions such as the share repurchase program and dividend increase may provide some support to the stock price in the short term.
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IMPORTANCE 85
RELEVANCE 100