Earnings Preview: UniFirst Reports Wednesday Before The Open

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 |  About: Unifirst Corporation (UNF), Includes: CTAS, GK, HCSG
by: Vytautas Drumelis

UniFirst Corporation (NYSE:UNF), together with its subsidiaries, provides workplace uniforms and protective work wear clothing in the United States, Canada, and Europe. The company designs, manufactures, personalizes, rents, cleans, delivers, and sells a range of uniforms and protective clothing, including shirts, pants, jackets, coveralls, lab coats, smocks, and aprons; and specialized protective wear, such as flame resistant and high visibility garments.

It is scheduled to report its Q3 2012 results on June 27, 2012, before the market opens.

Technical Overview


Key Metrics

  • Market Cap: 1.17B
  • 52-week trading range: 42.84 - 62.98
  • Trailing P/E: 14.07
  • Forward P/E: 12.84
  • Price/Sales: 0.97
  • Price/Book: 1.38
  • PEG Ratio: 1.21
  • Total Debt: 104.73M
  • Annual dividend yield: 0.30%
  • Return on Equity: 10.16%
  • Return on Assets: 6.94%

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $0.96 EPS, beating analyst estimates of $0.89.

The consensus EPS is $0.99 based on 7 analysts' estimates, up from $0.93 a year ago. Revenue estimates are $311.61M, up from $291.57M a year ago. The median target price by analysts for the stock is $68.00.

Average recommendation: Hold

Source: Marketwatch

Latest Developments

  • On April 4, 2012, The Board of Directors of UniFirst Corporation declared regular quarterly cash dividends of $0.0375 per share (3.75 cents) on the Company's Common Stock and $0.03 per share (3.0 cents) on the Company's Class B Common Stock. Both dividends are payable on July 2, 2012, to shareholders of record on June 11, 2012.
  • On January 4, 2012, UniFirst Corporation announced that for fiscal 2012, it has raised revenues to a range of $1.220 billion and $1.235 billion and income per diluted common share to be between $3.85 and $4.05.

Competitors

UniFirst Corp. operates in Textile - Apparel Clothing industry. The company could be compared to Cintas Corporation (NASDAQ:CTAS), G&K Services Inc. (GKSR), and Healthcare Services Group Inc. (NASDAQ:HCSG). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

UNF ChartClick to enlarge

UNF data by YCharts

Competitors' Latest Development

  • On May 1, 2012, G&K Services, Inc. announced that it is raising the lower-end of its fiscal 2012 revenue guidance to a range of $860 to $870 million, from the previously announced range of $855 to $870 million.
  • On April 10, 2012, Healthcare Services Group announced that Board of Directors declared a regular quarterly cash dividend of $0.1625 per common share, payable on May 18, 2012 to shareholders of record at the close of business on April 27, 2012.
  • On April 4, 2012, G&K Services, Inc. announced that its Board of Directors declared a special cash dividend of $6.00 per share, payable on April 27, 2012 to shareholders of record at the close of business on April 13, 2012.
  • On April 4, 2012, Healthcare Services Group reported in its Form 8-K that Wahl, has been appointed to serve as President & Chief Operating Officer, effective April 1, 2012.
  • On February 22, 2012, G&K Services, Inc. announced that its Chief Executive Officer (CEO), Douglas A. Milroy, will be taking a planned temporary medical leave, starting February 29, 2012 to treat an aortic aneurism.
  • On January 31, 2012, G&K Services, Inc. announced that based on first half performance and increased confidence in its outlook, the Company is raising the lower-end of its fiscal 2012 revenue guidance to a range of $855 to $870 million, from the previously announced range of $850 to $870 million.
  • On January 24, 2012, Healthcare Services Group announced that it has declared a regular quarterly cash dividend of $0.16125 per common share, payable on March 16, 2012 to shareholders of record at the close of business February 24, 2012.
  • On January 19, 2012, Cintas Corporation announced an agreement with Avendra, the hospitality industry's procurement services company, as the preferred supplier of full-service fire protection and life safety services.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.