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Shares of Aramark (NYSE: ARMK) were down 9.5% as of 3:45 p.m. Tuesday after thefood, facilities and uniform services company reported weaker-than-expected fiscal fourth-quarter 2016 results.
Quarterly revenue fell slightly from the same year-ago period, to roughly $3.544 billion and -- based on generally accepted accounting principles (GAAP) -- translated to net income attributable to Aramark shareholders of $83.3 million, or $0.33 per diluted share. On an adjusted basis, Aramark's net income grew 11.9% year over year, to $122 million, or $0.49 per share.
By comparison, analysts' consensus estimates predicted roughly the same adjusted earnings, but on higher revenue of $3.67 billion.
Nonetheless, Aramark CEO Eric Foss focused on the company's strengths, stating:
Looking forward to fiscal year 2017, Aramark expects adjusted earnings per share to be in the range of $1.85 to $1.95 -- the midpoint of which sits slightly below analysts' expectations for 2017 adjusted earnings of $1.91 per share.
That's not to say these results were as terrible as Tuesday's big drop seems to indicate. But given the combination of its top-line shortfall for the fourth quarter, underwhelming guidance, and the fact that shares had risen more than 20% over the past year leading up to this report, it's no surprise to see Aramark investors taking a step back on Tuesday.
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