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

Vestis (NYSE:VSTS) issued its quarterly earnings data on Tuesday. The company reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.09 by $0.07, FiscalAI reports. Vestis had a negative net margin of 0.63% and a positive return on equity of 5.27%. The company had revenue of $659.44 million for the quarter, compared to analyst estimates of $655.32 million. During the same period last year, the company posted ($0.05) earnings per share. Vestis’s revenue 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 Down 6.5%

NYSE:VSTS opened at $11.22 on Thursday. Vestis has a 12 month low of $3.98 and a 12 month high of $12.60. The firm has a fifty day simple moving average of $8.60 and a 200-day simple moving average of $7.32. The company has a current ratio of 2.13, a quick ratio of 1.74 and a debt-to-equity ratio of 1.44. The company has a market capitalization of $1.48 billion, a P/E ratio of -80.17 and a beta of 0.85.

Vestis News Roundup

Here are the key news stories impacting Vestis this week:

• Positive Sentiment: Vestis reported adjusted quarterly EPS of $0.16, beating the $0.09 consensus estimate, while revenue of $659.44 million also came in slightly above expectations. The beat suggests operations are holding up better than investors feared. Earnings transcript
• Positive Sentiment: The company issued FY2026 revenue guidance of about $2.7 billion, above the roughly $2.6 billion consensus estimate, which signals management is relatively confident in the revenue outlook.
• Positive Sentiment: Robert W. Baird raised its price target on Vestis to $14 from $10 and kept a neutral rating, implying more upside than previously expected. Robert W. Baird note
• Neutral Sentiment: Stifel Nicolaus also lifted its price target, to $11 from $8.50, while maintaining a hold rating, which suggests the stock may be closer to fair value after the recent run-up. Stifel Nicolaus note
• Neutral Sentiment: Recent coverage highlighted Vestis among the day’s biggest movers, reflecting strong investor attention following earnings and guidance updates. CNBC market move article

Wall Street Analysts Forecast Growth

VSTS has been the topic of several analyst reports. Robert W. Baird lifted their price target on shares of Vestis from $10.00 to $14.00 and gave the stock a “neutral” rating in a report on Wednesday. William Blair raised shares of Vestis from a “market perform” rating to an “outperform” rating in a report on Tuesday. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Vestis in a report on Monday, April 20th. The Goldman Sachs Group reaffirmed a “sell” rating and issued a $7.50 price target on shares of Vestis in a report on Wednesday. Finally, Barclays reaffirmed an “underweight” rating on shares of Vestis in a report on Tuesday, February 17th. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus target price of $9.63.

Institutional Investors Weigh In On Vestis

Several institutional investors and hedge funds have recently made changes to their positions in VSTS. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of Vestis by 10.9% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 355,493 shares of the company’s stock worth $3,519,000 after buying an additional 34,809 shares during the period. Acadian Asset Management LLC acquired a new stake in shares of Vestis during the first quarter worth $762,000. Creative Planning acquired a new stake in shares of Vestis during the second quarter worth $65,000. JPMorgan Chase & Co. lifted its stake in shares of Vestis by 739.5% during the second quarter. JPMorgan Chase & Co. now owns 675,770 shares of the company’s stock worth $3,872,000 after buying an additional 595,276 shares during the period. Finally, American Century Companies Inc. lifted its stake in shares of Vestis by 9.8% during the second quarter. American Century Companies Inc. now owns 275,531 shares of the company’s stock worth $1,579,000 after buying an additional 24,695 shares during the period. 97.40% of the stock is currently owned by institutional investors and hedge funds.

About Vestis

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.