24/7 Market News Snapshot 21 November, 2024 – Vestis Corporation (NYSE:VSTS)

November 21, 2024

DENVER, Colo., 21 November, 2024 (247marketnews.com) – (NYSE:VSTS) are discussed in this article.
Vestis Corporation has recently demonstrated substantial stock market activity, with its shares opening at $13.29 and rising to $14.95, an increase of 12.32%. This price surge follows a previous closing of $13.31 and reflects heightened investor interest, evidenced by a trading volume of 2.68 million shares. Technical analysis indicates a bullish trend, as the stock’s price has exceeded recent resistance levels. Should this momentum be sustained, it may further attract both retail and institutional investors, prompting close monitoring of critical support levels for potential entry opportunities.

In conjunction with this market performance, Vestis has disclosed its financial results for the fiscal year ending September 27, 2024. The company reported revenues amounting to $2.81 billion, reflecting a slight year-over-year decline of 0.7% largely due to reduced net volumes and increased operational costs. Adjusted EBITDA for the year was reported at $352.9 million, marking a 12.6% decrease from the previous year, while net income fell drastically to $21 million, a decline of 90.2%. Additionally, operating income showed notable reductions, highlighting the financial challenges faced in this period.

Despite these setbacks, Kim Scott, President and CEO of Vestis, expressed optimism regarding the company’s trajectory. She highlighted the ongoing enhancements in operational efficiency and the focus on improving customer experience as key drivers for future growth. Vestis anticipates revenues in the range of $2.80 billion to $2.83 billion for the upcoming fiscal year, with adjusted EBITDA expected between $345 million and $360 million.

To bolster financial resilience, Vestis has secured a $250 million accounts receivable securitization facility, aimed at improving liquidity and supporting future expansion efforts. In line with its commitment to returning value to investors, Vestis has also declared a quarterly cash dividend of $0.035 per share, scheduled for distribution on January 6, 2025. The company remains dedicated to navigating the evolving industry landscape while pursuing innovative solutions and maintaining fiscal discipline.

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