By Dean Seal
Cintas logged higher revenue and earnings in the fiscal first quarter. Here’s what you need to know.
PROFIT: The Cincinnati-based provider of uniform-rental and other services posted a profit of $385.1 million, up from $351.7 million in the same quarter a year ago.
EARNINGS: Quarterly earnings were $3.70 a share, up from $3.39 a share last year and above analyst forecasts for $3.67 a share, according to FactSet.
SALES: Revenue rose 8.1% to $2.34 billion, in line with the consensus estimate of analysts polled by FactSet.
WHAT WE WATCHED
ENERGY COSTS: Gross margin as a percentage of revenue improved during the quarter as costs for gasoline, natural gas and electricity dropped.
VOLUMES: While Cintas didn’t provide metrics on how volumes contributed to its revenue growth, Chief Executive Todd Schneider said strong execution from its operating segments contributed to “robust volume growth” in the fiscal first quarter.
SALES OUTLOOK: Cintas now expects $9.4 billion to $9.52 billion in revenue for the year, up from its previous guidance for $9.35 billion to $9.5 billion.
EPS FORECAST: The company now projects earnings of $14 to $14.45 a share, up from its prior forecast for $13.85 to $14.35 a share.
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