Apparel company UniFirst Corp. (UNF) reported Wednesday a profit for the second quarter that increased 39 percent from last year, reflecting improved operating margins at its core laundry operations as well as revenue growth. Both earnings per share and quarterly revenues topped analysts' expectations. The company also raised its earnings and revenue guidance for the full-year 2013.
"Our excellent results for the first half of the year are due to strong execution in all facets of our operations. We are very pleased with these results, particularly as we have been faced with a challenging economic environment. Businesses remain hesitant to add new costs, including new employees who are potential wearers of our uniforms," President and CEO Ronald Croatti said in a statement.
The Wilmington, Massachusetts-based provider of workplace uniforms and protective work wear clothing reported net income of $26.20 million or $1.33 per share for the second quarter, up from $18.86 million or $0.96 per share in the prior-year quarter.
On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $1.13 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter increased 7.9 percent to $334.31 million from $309.96 million in the sames quarter last year, and topped six Wall Street analysts' consensus estimate of $328.59 million.
Revenues from core laundry operations increased 8.8 percent to $301.63 million, and operating margin expanded 350 basis points to 13.4 percent from last year's 9.9 percent. Revenues from first aid grew 9.5 percent to $10.08 million from the year-ago quarter.
Meanwhile, revenue from its smaller business of specialty garments, which consists of nuclear decontamination and clean-room operations, recorded a 3.9 percent decline to $22.59 million from last year.
"Based on the strength of the first half and our current outlook for the remainder of the year, we are increasing our previously communicated guidance," Croatti added.
Looking ahead to fiscal 2013, UniFirst currently expects earnings in a range of $5.65 to $5.80 per share on projected revenues between $1.344 billion and $1.354 billion. The company had earlier forecast earnings of $5.10 to $5.25 per share and revenues of $1.335 billion to $1.348 billion.
Street is currently looking for full-year 2013 earnings of $5.22 per share on annual revenues of $1.34 billion.
UNF closed Tuesday's regular trading session at $88.57, up $0.24 on a volume of 52,200 shares.
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