Shares of Aramark Corp. (ARMK) - Get Report tumbled 12% to $31.44 Tuesday after the food, facilities management, and uniform services company provided an earnings forecast that disappointed Wall Street.
For fiscal years 2019-2021, the company, which held an investor day on Tuesday, forecast 2% to 4% organic growth and double-digit adjusted earnings per share growth. For 2019, Aramark said it was looking for 2% to 4% organic growth and adjusted earnings of $2.27 to $2.37 a share. Analysts were expecting the company to post earnings of $2.23 a share.
On average over the last three years, Aramark has grown earnings per share by 31% each year. It achieved revenue growth of 8.1% over the last year.
The company operates in three segments: U.S. food and support services, international food and support services, and uniform and career apparel. In January, Aramark announced that it had completed the acquisition of AmeriPride Services Inc. for about $1 billion
Last month, Aramark posted fourth-quarter earnings of 69 cents a share. Earnings, adjusted for one-time gains and costs, were 70 cents, missing analysts' expectations of 71 cents.
The company reported revenue of $3.91 billion, which also fell short of Wall Street forecasts of $3.93 billion. For the year, the company reported profit of $567.9 million, or $2.24 a share. Revenue totaled $15.79 billion.