Cintas beats earnings expectations, provides upbeat full-year outlook

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Cintas Corp. CTAS, -2.10% reported Thursday fiscal fourth-quarter profit that nearly doubled and topped expectations, and provided an upbeat full-year outlook. The uniform and business facility products and services company's stock was indicated to open little changed. Net income for the quarter to May 31 rose to $267.7 million, or $2.47 a share, from $144.6 million, or $1.35 a share, in the year-ago period. The FactSet consensus for earnings per share was $2.31. Revenue grew 13.3% to $1.84 billion, just above the FactSet consensus of $1.82 billion, as uniform rental and facility services revenue grew 15.4% to $1.47 billion. Gross margin as a percentage of revenue improved to 46.8% from 43.7%. For fiscal 2022, the company expects EPS of $10.35 to $10.75 and revenue of $7.53 billion to $7.63 billion, which compare favorably to the FactSet EPS consensus of $10.34 and revenue consensus of $7.10 billion. The stock has gained 7.7% over the past three months, while the S&P 500 SPX, -0.32% has tacked on 4.9%.

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