G&K Services Earnings: Here’s Why the Stock is Up Now

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G&K Services Inc (NASDAQ:GK) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.17%.
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G&K Services Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 32.69% to $0.69 in the quarter versus EPS of $0.52 in the year-earlier quarter.

Revenue: Rose 3.56% to $226.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.69 per share. By that measure, the company beat the mean analyst estimate of $0.62. It missed the average revenue estimate of $229.36 million.

Quoting Management: “Our team delivered another terrific quarter, achieving a new all-time high for quarterly earnings per share,” said Douglas A. Milroy, Chief Executive Officer. “The execution of our game plan continues to produce substantial margin improvements. We’re also pleased with the company’s success in managing working capital and converting our improved earnings into strong cash flow.”

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