Uniform rental provider Vestis Corporation (NYSE:VSTS) will be reporting earnings this Monday after the bell. Here’s what investors should know.
Vestis met analysts’ revenue expectations last quarter, reporting revenues of $673.8 million, down 3.5% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates.
Is Vestis a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Vestis’s revenue to be flat year on year at $685.5 million, improving from the 4.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Vestis has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Vestis’s peers in the industrial & environmental services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Driven Brands delivered year-on-year revenue growth of 6.6%, meeting analysts’ expectations, and Tetra Tech reported revenues up 1.6%, topping estimates by 10.7%. Driven Brands traded up 1.6% following the results while Tetra Tech was also up 15.4%.
Read our full analysis of Driven Brands’s results here and Tetra Tech’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the industrial & environmental services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3% on average over the last month. Vestis is up 23.4% during the same time and is heading into earnings with an average analyst price target of $5.67 (compared to the current share price of $6.52).
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