G&K Services Inc. beat Wall Street earnings estimates with a profit of $13.6 million in the third quarter, up from a loss of $4.8 million a year earlier. The uniform maker's earnings per share were a record 69 cents.
The Minnetonka firm's adjusted earnings per share, also 69 cents, beat Wall Street expectations by 7 cents a share.
Revenue grew 3.6 percent to $226.6 million, slightly below the $229.4 million Wall Street had been expecting.
"The execution of our game plan continues to produce substantial margin improvements," said CEO Douglas Milroy. "We're also pleased with the company's success in managing working capital and converting our improved earnings into strong cash flow."
G&K raised its earnings guidance for the year to $2.60 to $2.65 per share, up from the previous range of $2.50 to $2.60. Analysts had been expecting $2.59 per share for the year. The company's revenue guidance for the year remained unchanged at a range of $905 million to $915 million.
G&K's shares rose 4.2 percent, or $1.90, to close at $46.99 in Tuesday's trading.
For the first nine months, the company earned $38.7 million, nearly three times last year's $13.9 million. Earnings per share were $1.99, on revenue of $678.2 million, up 5 percent.