Vestis Q3 revenue misses estimates on lower volumes
VSTS•Analyst view
The current average analyst rating on the shares is "hold," with 2 "strong buy" or "buy," 3 "hold," and 3 "sell" or "strong sell" recommendations. The average consensus recommendation for the personal services peer group is "buy."
Wall Street's median 12-month price target for Vestis Corporation is $10.00, about 27.9% below its August 10 closing price of $13.87. The stock recently traded at 22 times the next 12-month earnings, versus a P/E of 20 three months ago.
Outlook raised for free cash flow
Vestis raised its full-year 2026 free cash flow outlook by $30 million, citing strong execution. The company now expects free cash flow of $160 million to $170 million.
It maintained its fiscal 2026 revenue outlook of flat to down 2% versus normalized 2025 revenue, and said it sees adjusted EBITDA of $310 million to $315 million, up $2.5 million at the midpoint.
Quarterly revenue miss and earnings beat
Vestis said fiscal third-quarter revenue declined 1.8% year over year, missing analyst expectations, as a 4.5% decline in pounds processed weighed on revenue. The uniforms and workplace supplies provider reported adjusted net income of $24.20 million for the quarter, beating analyst expectations.
Key details from the release:
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q3 Revenue | Miss | $661.66 mln | $668.99 mln (6 Analysts) |
| Q3 Adjusted Net Income | Beat | $24.20 mln | $14.69 mln (3 Analysts) |
| Q3 Net Income | $11.05 mln | ||
| Q3 Adjusted EBITDA |
