Aramark plunges 11% in disappointing guidance

|About: Aramark Services, Inc. (ARMK)|By:, SA News Editor

Holding its Investor Day, Aramark (ARMK -11.1%) expects FY19 adjusted EPS of $2.27-$2.37 vs. Street estimates of $2.50.

Organic revenue growth is seen at 2-4%. Free cash flow is expected to be about $500M.

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Goldman bull Stephen Grambling says market reaction is overdone, noting the stock was already trading at a cheap valuation.

He reminds some accounting changes are making the EPS miss look worse than it is. He continues to rate the stock a Buy, but may trim estimates based on today's information.

Source: Bloomberg

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