Uniform rental provider Vestis Corporation (NYSE:VSTS) will be reporting results this Tuesday after market close. Here’s what investors should know.
Vestis missed analysts’ revenue expectations by 4% last quarter, reporting revenues of $665.2 million, down 5.7% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates.
Is Vestis a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Vestis’s revenue to decline 3.3% year on year to $675 million, a further deceleration from the 1.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.07 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Vestis has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Vestis’s peers in the industrial & environmental services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. CECO Environmental delivered year-on-year revenue growth of 34.8%, beating analysts’ expectations by 3.5%, and UniFirst reported revenues up 1.2%, falling short of estimates by 0.6%. CECO Environmental traded up 25.5% following the results while UniFirst was down 8.1%.
Read our full analysis of CECO Environmental’s results here and UniFirst’s results here.
Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the industrial & environmental services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.4% on average over the last month. Vestis is down 2.4% during the same time and is heading into earnings with an average analyst price target of $6.14 (compared to the current share price of $5.73).
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