- Revenue Growth: Cintas reported first quarter revenue of $2.50 billion, a 6.8% increase year-over-year, meeting the estimate of $2.49 billion.
- Earnings Per Share (EPS): The company posted EPS of $1.10, compared to $3.70 in the same quarter last year.
- Uniform Rental and Facility Services: Revenue from this segment was $1.93 billion, a 5.9% increase year-over-year, but slightly below the estimate of $1.94 billion.
- Gross Margin Improvement: The gross margin improved to 50.1% from 48.7% year-over-year, exceeding the estimate of 49.2%.
- Fiscal Year 2025 EPS Guidance: Cintas raised its diluted EPS expectations for fiscal 2025 to a range of $4.17 to $4.25, following a four-for-one stock split on September 11, 2024.
- Interest Expenses: Fiscal year 2025 interest, net is expected to be approximately $101.0 million, up from $95.0 million in fiscal year 2024, primarily due to higher variable rate debt used for share buybacks.
- Tax Rate: The effective tax rate for fiscal year 2025 is expected to remain stable at 20.4%, the same as in fiscal year 2024.
- CEO’s Comments: Todd M. Schneider, President and CEO, highlighted the strength and breadth of Cintas’ value proposition and praised the execution by their employee-partners.
- Analyst Ratings: The stock has 7 buy ratings, 9 hold ratings, and 4 sell ratings from analysts.
A look at Cintas Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Cintas Corp seems to have a positive long-term outlook. With a high Momentum score of 5, the company is showing strong performance and upward trend in its market activity. This indicates that Cintas Corp is gaining traction and could continue to see growth in the future.
Additionally, Cintas Corp scores well in Growth with a score of 4, suggesting promising prospects for expansion and development. The company’s focus on designing, manufacturing, and implementing various corporate identity programs positions it well for continued growth and market competitiveness. Overall, Cintas Corp‘s solid scores in Momentum and Growth highlight its potential for long-term success in the industry.
Summary: Cintas Corporation focuses on designing, manufacturing, and implementing corporate identity uniform programs. In addition to these services, the company also offers a range of other products and services including entrance mats, restroom supplies, promotional products, document management, fire protection, and first aid and safety services.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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