Earnings Alerts

Cintas Corp (CTAS) Earnings: FY EPS Forecast Raised Amid Strong Q3 Results

  • Cintas Corporation has raised its full-year earnings per share (EPS) forecast to a range of $4.36 to $4.40, up from the previous estimate of $4.28 to $4.34.
  • In the third quarter, Cintas reported an EPS of $1.13 and revenue of $2.61 billion, marking an 8.4% increase year-over-year, surpassing the estimate of $2.6 billion.
  • Revenue from Uniform Rental and Facility Services came in at $2.02 billion, a 7.7% year-over-year increase, aligning with estimates.
  • The gross margin improved to 50.6%, compared to 49.4% in the previous year, and above the estimated 50%.
  • For fiscal year 2025, Cintas has updated its annual revenue expectations to a range of $10.280 billion to $10.305 billion.
  • The net interest for fiscal year 2025 is projected at approximately $100 million, up from $95 million in fiscal year 2024, largely due to higher variable rate debt.
  • The effective tax rate for fiscal year 2025 is estimated to be 20.2%.
  • A $15 million reduction at the top of the revenue range reflects the negative impact of foreign currency exchange rate fluctuations experienced in the third quarter and anticipated for the fourth quarter.
  • Analyst recommendations for Cintas include 6 buys, 9 holds, and 4 sells.

Cintas Corp on Smartkarma

On Smartkarma, analysts from Baptista Research and Value Investors Club have covered Cintas Corp. Baptista Research published a bullish report titled “Cintas Corporation: Customer Base Expansion through No Program Accounts As A Critical Factor Driving Growth! – Major Drivers,” discussing the company’s strong financial performance in its fiscal 2025 second-quarter results. Cintas Corp saw a 7.8% increase in total revenue to $2.56 billion, with an organic growth rate of 7.1% despite facing some challenges.

However, Value Investors Club took a bearish stance in their report “Cintas Corp (CTAS) – Wednesday, Jul 17, 2024,” mentioning how the company initially benefited from peak demand post-Covid but is now encountering challenges as demand decreases. They highlighted the importance of adapting to changing market conditions as competition increases, impacting Cintas Corp‘s market share. It’s essential for investors to consider both the bullish and bearish perspectives when evaluating Cintas Corp‘s investment potential.


A look at Cintas Corp Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth4
Resilience3
Momentum3
OVERALL SMART SCORE2.8

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

Cintas Corp, a company specializing in corporate identity uniform programs, is looking at a promising long-term outlook based on its Smartkarma Smart Scores. Their Growth and Resilience scores of 4 and 3, respectively, indicate a sturdy foundation for potential expansion and durability in the face of challenges. Momentum is also on their side with a score of 3, suggesting positive market sentiment and performance. While Value and Dividend scores are at 2, signaling room for improvement, the overall positive trend in the other factors bodes well for Cintas Corp‘s future prospects.

Cintas Corporation, known for its diverse services including entrance mats, promotional products, fire protection, and more, is positioned to benefit from its solid Growth, Resilience, and Momentum scores according to Smartkarma. With a strong emphasis on corporate identity uniform programs, the company’s ability to adapt to changing market dynamics and maintain positive performance indicators sets a favorable tone for investors. While there may be room for enhancements in Value and Dividend scores, the overall outlook for Cintas Corp remains optimistic based on its robust fundamentals and market positioning.


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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