Vestis (NYSE:VSTS) Issues Earnings Results, Beats Estimates By $0.07 EPS

Vestis (NYSE:VSTS) posted its earnings results on Tuesday. The company reported $0.16 earnings per share for the quarter, beating analysts’ consensus estimates of $0.09 by $0.07, FiscalAI reports. Vestis had a negative net margin of 1.75% and a positive return on equity of 2.08%. The firm had revenue of $659.44 million during the quarter, compared to analyst estimates of $655.32 million. During the same period last year, the firm posted ($0.05) earnings per share. Vestis’s revenue for the quarter was down .9% compared to the same quarter last year.

Here are the key takeaways from Vestis’ conference call:

• Vestis reported a meaningful turnaround in second-quarter profitability, with adjusted EBITDA of about $74.5 million, up 19% year over year, and the company said this was its first year-over-year EBITDA growth in more than two years.
• Management highlighted early gains from its transformation plan, including a 0.02 improvement in operating leverage, better plant productivity, lower cost per pound, and improving service metrics such as on-time delivery and customer complaints.
• Revenue was down slightly to about $659 million, but revenue per pound was flat year over year, reflecting a deliberate shift away from lower-margin volume and toward better pricing and product mix.
• The company substantially boosted cash generation, with $45.6 million of free cash flow in the quarter and $74 million year to date, driven by tighter working capital, inventory, and collections management.
• Vestis raised full-year guidance for both adjusted EBITDA and free cash flow, now expecting adjusted EBITDA of $295 million to $325 million and free cash flow of $120 million to $150 million, while also signaling a return to revenue growth in Q4 fiscal 2026.

Vestis Trading Up 26.2%

VSTS stock traded up $2.44 during trading on Tuesday, hitting $11.74. The company had a trading volume of 1,038,336 shares, compared to its average volume of 1,631,258. Vestis has a 52-week low of $3.98 and a 52-week high of $12.23. The company has a 50 day simple moving average of $8.45 and a 200-day simple moving average of $7.22. The firm has a market capitalization of $1.55 billion, a P/E ratio of -31.59 and a beta of 0.85. The company has a quick ratio of 1.74, a current ratio of 2.17 and a debt-to-equity ratio of 1.48.

Analysts Set New Price Targets

Several equities analysts have commented on VSTS shares. Weiss Ratings reiterated a “sell (d)” rating on shares of Vestis in a research report on Monday, April 20th. Barclays restated an “underweight” rating on shares of Vestis in a research report on Tuesday, February 17th. Finally, The Goldman Sachs Group lifted their price target on Vestis from $5.30 to $6.00 and gave the stock a “sell” rating in a research report on Wednesday, February 11th. One research analyst has rated the stock with a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat, Vestis presently has an average rating of “Strong Sell” and a consensus target price of $6.17.

Hedge Funds Weigh In On Vestis

Institutional investors have recently modified their holdings of the stock. Fox Run Management L.L.C. bought a new stake in shares of Vestis during the fourth quarter valued at approximately $162,000. Mercer Global Advisors Inc. ADV grew its stake in Vestis by 107.4% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 21,860 shares of the company’s stock worth $146,000 after purchasing an additional 11,318 shares in the last quarter. Captrust Financial Advisors increased its holdings in Vestis by 15.6% during the 2nd quarter. Captrust Financial Advisors now owns 20,599 shares of the company’s stock worth $118,000 after purchasing an additional 2,787 shares during the period. EntryPoint Capital LLC purchased a new position in Vestis during the 4th quarter worth $113,000. Finally, State of Wyoming raised its position in Vestis by 10.4% during the 4th quarter. State of Wyoming now owns 15,145 shares of the company’s stock valued at $101,000 after purchasing an additional 1,428 shares in the last quarter. 97.40% of the stock is owned by hedge funds and other institutional investors.

Vestis Company Profile

Vestis Corporation provides uniform rentals and workplace supplies in the United States and Canada. Its products include uniform options, such as shirts, pants, outerwear, gowns, scrubs, high visibility garments, particulate-free garments, and flame-resistant garments, as well as shoes and accessories; and workplace supplies, including managed restroom supply services, first-aid supplies and safety products, floor mats, towels, and linens. The company serves manufacturing, hospitality, retail, food processing, food service, pharmaceuticals, healthcare, automotive, and cleanroom industries.