Cintas inventory edges greater on Q2 earnings beat, raised full-year outlook

CINCINNATI – Cintas Company (NASDAQ:CTAS) reported better-than-expected second quarter earnings on Thursday, because the uniform rental and facility companies supplier noticed sturdy income development and margin growth. CTAS shares had been buying and selling 1.6% greater following the outcomes.

The corporate posted adjusted earnings per share of $1.09 for the quarter ended November 30, beating analyst estimates of $1.01. Income grew 7.8% YoY to $2.56 billion, according to expectations.

“Cintas delivered sturdy ends in the second quarter, with sturdy year-over-year income and earnings development, glorious margin growth and robust money era,” stated Todd M. Schneider, Cintas’ President and CEO.

Gross margin improved to 49.8% from 48.0% within the year-ago quarter, pushed by decrease vitality bills. Working revenue jumped 18.4% to $591.4 million.

The corporate’s uniform rental and facility companies phase, its largest enterprise, noticed income rise 7.6% to $1.99 billion. The primary assist and security companies unit posted 12.4% development to $299.4 million.

Trying forward, Cintas raised its full-year earnings steerage. The corporate now expects fiscal 2025 EPS of $4.28 to $4.34, up from its earlier outlook of $4.17 to $4.25 and above the $4.24 analyst consensus.

Income for the yr is projected between $10.26 billion and $10.32 billion, a slight enhance from the prior $10.22 billion to $10.32 billion vary.

“We imagine that Cintas’ differentiated tradition, superior services and products and industry-best expertise proceed to place us to ship significant worth creation in fiscal 2025 and past,” Schneider added.

The corporate additionally declared a quarterly dividend of $0.39 per share, payable on December 13, representing a 14.9% enhance from final yr.

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