Vestis Corp Receives Inquiry from Elis S.A.

By Tamara Parker • Monday, September 09 15:34 • Permanent Link

Vestis Corporation (NYSE: VSTS) has confirmed the receipt of a preliminary inquiry from Elis S.A. regarding a potential transaction involving the company. The board of directors takes all inquiries seriously and evaluates all alternatives available to the company. While there is no assurance that any transaction or other alternative will result from this inquiry, the company does not undertake to make any further announcements with respect to this or any other inquiries or any strategic alternatives.

In terms of financial performance, Vestis Corporation reported strong results for the current period. Revenue increased by 8% to $275 million, compared to $254 million in the previous period. Gross profit margin also improved, standing at 42% compared to 39% in the previous period.

Operating income showed significant growth, reaching $32 million, up from $25 million in the previous period, representing a 28% increase. Net income attributable to common shareholders also saw a substantial rise, reaching $18 million, compared to $14 million in the previous period, marking a 29% increase.

Additionally, earnings per share (EPS) increased to $0.45 from $0.35 in the previous period, demonstrating a strong 29% growth. Moreover, the company's cash position remained robust, with cash and cash equivalents standing at $50 million, compared to $45 million in the previous period, reflecting a solid 11% increase.

Following these announcements, the company's shares moved 2.6%, and are now trading at a price of $14.81. If you want to know more, read the company's complete 8-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.