Vestis (NYSE:VSTS) Announces Earnings Results

Vestis (NYSE:VSTS) released its quarterly earnings results on Tuesday. The company reported $0.18 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.10 by $0.08, FiscalAI reports. Vestis had a negative net margin of 0.63% and a positive return on equity of 5.27%. The company had revenue of $661.66 million during the quarter, compared to analysts’ expectations of $668.94 million.

Here are the key takeaways from Vestis’ conference call:

• Adjusted EBITDA rose 23% year over year to $80.9 million, while margin expanded to 12.2% from 9.8% on higher revenue per pound, productivity gains, and lower operating expenses.
• Third-quarter revenue declined 1.8% to approximately $662 million as pounds processed fell 4.5%, reflecting the intentional exit of low-quality volume; management expects revenue to remain flat to down 2% for fiscal 2026.
• Revenue per pound increased $0.04, or about 3%, marking the first year-over-year improvement since Vestis became public, driven by pricing discipline, product mix improvements, and reduced linen concentration.
• Management raised fiscal 2026 free cash flow guidance to $160 million-$170 million from $120 million-$150 million, citing stronger collections, working-capital execution, and balance-sheet management; the company also repaid $30 million of term-loan debt.
• Vestis expects approximately $10 million in annualized savings beginning in fiscal 2027 from outsourcing corporate support functions, while further upside is expected from improving underperforming market centers, expanding Market Development Representatives, and restoring volume growth in 2027.

Vestis Stock Down 0.3%

Shares of VSTS opened at $13.83 on Wednesday. The company has a quick ratio of 1.69, a current ratio of 2.13 and a debt-to-equity ratio of 1.44. The company has a 50-day moving average price of $14.21 and a two-hundred day moving average price of $10.68. The stock has a market cap of $1.83 billion, a price-to-earnings ratio of -98.79 and a beta of 0.97. Vestis has a 12 month low of $3.98 and a 12 month high of $16.90.

Trending Headlines about Vestis

Here are the key news stories impacting Vestis this week:

• Positive Sentiment: Adjusted earnings were $0.18 per share, exceeding analyst estimates of approximately $0.10–$0.11 and rising from $0.05 a year earlier. Adjusted net income was $24.2 million, while adjusted EBITDA reached $80.9 million. Vestis Q3 Earnings Surpass Estimates
• Positive Sentiment: Vestis increased its full-year 2026 outlook. The company maintained revenue guidance of approximately $2.7 billion, broadly in line with consensus, while a higher cash-flow outlook helped offset the quarterly revenue shortfall. Vestis Reports Third Quarter 2026 Results and Increases Full Year 2026 Outlook
• Neutral Sentiment: Fiscal third-quarter revenue was $661.7 million, slightly below the $668.9 million analyst consensus. Net income totaled $11.0 million, or $0.08 per diluted share, and the company’s reported net margin remained slightly negative. Vestis Fiscal Q3 Earnings Snapshot
• Neutral Sentiment: Management discussed the third-quarter performance and updated outlook on the earnings call, which investors may review for details on operating trends, margins and cash generation. Vestis Q3 2026 Earnings Call Transcript
• Negative Sentiment: Zacks Research downgraded Vestis from “strong buy” to “hold.” The change could temper bullish sentiment despite the earnings beat and improved cash-flow outlook. Zacks.com

Hedge Funds Weigh In On Vestis

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Royal Bank of Canada boosted its holdings in shares of Vestis by 1,520.5% in the 4th quarter. Royal Bank of Canada now owns 5,688,399 shares of the company’s stock worth $37,942,000 after acquiring an additional 5,337,380 shares in the last quarter. Greenstone Partners & Co. LLC acquired a new stake in Vestis during the 4th quarter valued at $33,979,000. Jacobs Levy Equity Management Inc. raised its position in Vestis by 1,265.8% in the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 1,960,150 shares of the company’s stock valued at $8,879,000 after purchasing an additional 1,816,633 shares during the last quarter. First Trust Advisors LP raised its position in Vestis by 327.2% in the 2nd quarter. First Trust Advisors LP now owns 1,461,190 shares of the company’s stock valued at $8,373,000 after purchasing an additional 1,119,157 shares during the last quarter. Finally, Norges Bank acquired a new position in Vestis in the fourth quarter worth $6,748,000. Institutional investors own 97.40% of the company’s stock.

Wall Street Analysts Forecast Growth

VSTS has been the topic of several recent analyst reports. The Goldman Sachs Group reaffirmed a “sell” rating on shares of Vestis in a research report on Tuesday. Zacks Research downgraded shares of Vestis from a “strong-buy” rating to a “hold” rating in a research note on Monday. Robert W. Baird boosted their target price on shares of Vestis from $10.00 to $14.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 13th. William Blair upgraded shares of Vestis from a “market perform” rating to an “outperform” rating in a research note on Tuesday, May 12th. Finally, Barclays increased their price target on shares of Vestis from $6.00 to $9.00 and gave the company an “underweight” rating in a report on Friday, May 15th. One research analyst has rated the stock with a Buy rating, three have issued a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, Vestis currently has a consensus rating of “Reduce” and an average price target of $9.50.

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.