G&K first-quarter results slightly exceed expectations
- April 29, 2014 - 7:49 PM
G&K Services Inc. beat first-quarter earnings and revenue expectations by small margins Tuesday.
The Minnetonka-based maker of industrial clothing and uniforms reported adjusted earnings of 73 cents a share, beating analysts’ expectations by a penny. Revenue of $225 million just exceeded Wall Street’s expectation of $224.6 million.
The company’s stock rose 65 cents, or 1.2 percent, to $55.02.
Net earnings of $10.4 million were down 24 percent from a year ago, while revenue rose 3 percent. Net earnings were adversely affected by a 26-cent-per-share charge related to the firm’s anticipated withdrawal from four multiemployer pension plans, G&K said.
Adjusted earnings for 2014 are expected to range from $2.84 to $2.90 per share, compared with Wall Street analysts’ expectation of $2.87. That’s a change from the previous range of $2.80 to $2.90 per share.
G&K said it expects 2014 revenue of $895 million to $900 million, compared with analysts’ expectation of $899.1 million. The guidance narrowed from the previously stated range of $890 million to $900 million.
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