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

Vestis (NYSE:VSTS) issued its quarterly earnings results 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 for the quarter, compared to analysts’ expectations of $655.32 million. During the same period in the previous year, the firm posted ($0.05) EPS. The business’s revenue for the quarter 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 Stock Performance

Shares of NYSE:VSTS traded up $2.44 during mid-day trading on Tuesday, reaching $11.74. 1,038,336 shares of the company traded hands, compared to its average volume of 1,631,258. The company’s 50 day moving average price is $8.45 and its 200-day moving average price is $7.22. The firm has a market cap of $1.55 billion, a PE ratio of -31.59 and a beta of 0.85. Vestis has a 52 week low of $3.98 and a 52 week high of $12.23. The company has a debt-to-equity ratio of 1.48, a current ratio of 2.17 and a quick ratio of 1.74.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the stock. Weiss Ratings reiterated a “sell (d)” rating on shares of Vestis in a report on Monday, April 20th. The Goldman Sachs Group lifted their target price on shares of Vestis from $5.30 to $6.00 and gave the stock a “sell” rating in a research report on Wednesday, February 11th. Finally, Barclays reissued an “underweight” rating on shares of Vestis in a report on Tuesday, February 17th. One equities research analyst has rated the stock with a Hold rating and four have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Vestis presently has an average rating of “Strong Sell” and an average target price of $6.17.

Hedge Funds Weigh In On Vestis

Several large investors have recently made changes to their positions in VSTS. Fox Run Management L.L.C. bought a new position in shares of Vestis during the fourth quarter worth $162,000. Mercer Global Advisors Inc. ADV increased its holdings in Vestis by 107.4% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 21,860 shares of the company’s stock valued at $146,000 after acquiring an additional 11,318 shares during the last quarter. Captrust Financial Advisors lifted its stake in Vestis by 15.6% in the 2nd quarter. Captrust Financial Advisors now owns 20,599 shares of the company’s stock worth $118,000 after purchasing an additional 2,787 shares in the last quarter. EntryPoint Capital LLC purchased a new stake in Vestis in the 4th quarter worth $113,000. Finally, State of Wyoming boosted 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 valued at $101,000 after purchasing an additional 1,428 shares during the last quarter. 97.40% of the stock is currently owned by hedge funds and other institutional investors.

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.