Vestis (NYSE:VSTS) Posts Earnings Results, Beats Expectations By $0.07 EPS

Vestis (NYSE:VSTS) posted its quarterly earnings data on Tuesday. The company reported $0.16 EPS for the quarter, topping analysts’ consensus estimates of $0.09 by $0.07, FiscalAI reports. Vestis had a positive return on equity of 2.08% and a negative net margin of 1.75%.The firm had revenue of $659.44 million during the quarter, compared to analysts’ expectations of $655.32 million. During the same quarter last year, the business posted ($0.05) EPS. The firm’s quarterly 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 Up 29.5%

Vestis stock traded up $2.74 during trading on Tuesday, hitting $12.04. The company’s stock had a trading volume of 3,426,393 shares, compared to its average volume of 1,648,971. The stock’s fifty day moving average is $8.45 and its 200 day moving average is $7.22. Vestis has a 1-year low of $3.98 and a 1-year high of $12.47. The stock has a market capitalization of $1.59 billion, a price-to-earnings ratio of -32.57 and a beta of 0.85. The company has a debt-to-equity ratio of 1.48, a quick ratio of 1.74 and a current ratio of 2.17.

Analysts Set New Price Targets

Several research firms have issued reports on VSTS. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Vestis in a research note on Monday, April 20th. The Goldman Sachs Group boosted their price objective on shares of Vestis from $5.30 to $6.00 and gave the company a “sell” rating in a research report on Wednesday, February 11th. Finally, Barclays reissued an “underweight” rating on shares of Vestis in a research note on Tuesday, February 17th. One research analyst has rated the stock with a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat, Vestis currently has an average rating of “Strong Sell” and an average target price of $6.17.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of VSTS. State of Wyoming lifted its holdings in shares of Vestis by 10.4% during the 4th quarter. State of Wyoming now owns 15,145 shares of the company’s stock worth $101,000 after acquiring an additional 1,428 shares during the period. Captrust Financial Advisors grew its holdings in Vestis by 15.6% in the second quarter. Captrust Financial Advisors now owns 20,599 shares of the company’s stock valued at $118,000 after purchasing an additional 2,787 shares during the period. Mariner LLC increased its position in Vestis by 3.2% during the third quarter. Mariner LLC now owns 123,981 shares of the company’s stock worth $562,000 after purchasing an additional 3,798 shares during the last quarter. EverSource Wealth Advisors LLC raised its stake in Vestis by 471.9% during the second quarter. EverSource Wealth Advisors LLC now owns 5,456 shares of the company’s stock worth $31,000 after purchasing an additional 4,502 shares during the period. Finally, PNC Financial Services Group Inc. raised its stake in Vestis by 147.1% during the fourth quarter. PNC Financial Services Group Inc. now owns 8,006 shares of the company’s stock worth $53,000 after purchasing an additional 4,766 shares during the period. Institutional investors and hedge funds own 97.40% of the company’s stock.

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.