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UniFirst Reported Mixed Quarterly Results for Fiscal 1Q16

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Price movement of UniFirst

UniFirst (UNF) rose by 0.60% to close at $102.26 per share as of January 6, 2016. Its price movements on a weekly, monthly, and year-to-date (or YTD) basis are -3.5%, -5.4%, and -3.5%, respectively.

Currently, UNF is trading 3.4% below its 20-day moving average, 4.9% below its 50-day moving average, and 9.7% below its 200-day moving average.

The PowerShares S&P SmallCap Low Volatility ETF (XSLV) invests 0.82% of its holdings in UniFirst. The ETF tracks a volatility weighted index of the 120 least-volatile securities from the S&P SmallCap 600 Index.

The SPDR S&P SmallCap 600 Value ETF (SLYV) invests 0.53% of its holdings in UniFirst. The ETF aims to track a market-cap–weighted index of US small-cap value stocks. The index selects from stocks with market capitalizations between $250 million and $1.2 billion.

Competitors of UniFirst and their market capitalizations are as follows:

  • Airgas (ARG) — $9.9 billion
  • Cintas (CTAS) — $9.5 billion
  • Aramark (ARMK) — $7.7 billion
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Performance of UniFirst in fiscal 1Q16

UniFirst (UNF) reported fiscal 1Q16 revenue of $373.4 million, a rise of 0.81% when compared to revenue of $370.4 million in fiscal 1Q15. The company’s operating income fell by 3.8% in fiscal 1Q16 compared to the prior year’s period. Its net income and EPS (earnings per share) fell to $35.9 million and $1.78, respectively, in fiscal 1Q16, compared to net income and EPS of $37.4 million and $1.85, respectively, in fiscal 1Q15.

Meanwhile, its cash and cash equivalents rose by 12.6%, and its inventories fell by 4.4% in fiscal 1Q16 on a quarterly basis. Its current ratio fell to 3.56 in fiscal 1Q16 compared to a current ratio of 3.59 in fiscal 4Q15.

UniFirst’s PE (price-to-earnings) and PBV (price-to-book value) ratios are 16.3x and 1.6x, respectively, as of January 8, 2016.

Projections

The company has projected that for fiscal 2016, its revenue will be in the range of $1.46–$1.48 billion. It expects its diluted EPS to be in the range of $5.60–$5.80.

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