NEW YORK (TheStreet) -- UniFirst (UNF) - Get Report shares closed trading up 0.9% to $118.75 in intraday trading on Wednesday following the release of the workplace uniform provider's second quarter earnings results before the opening bell today.
The Wilmington, MA-based company reported second quarter earnings of $1.37 per diluted share on an adjusted basis, seven cents better than the $1.30 analysts on average were expecting the company to report.
The company generated $361.5 million in revenue during the period, a 5.1% increase over the same quarter last year that beat analysts' guidance of $360.65 million.
Despite the strong quarter, the company lowered its full year earnings expectations to between $5.68 and $5.85 per share from its previous view of between $5.75 and $6.00, to reflect what it called an "environmental charge". Analysts were expecting the company to earn $6.01 during the year.
TheStreet Ratings team rates UNIFIRST CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNIFIRST CORP (UNF) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: UNF Ratings Report