Cintas (NASDAQ:CTAS) Posts Quarterly Earnings Results, Beats Expectations By $0.10 EPS

Cintas (NASDAQ:CTAS) posted its quarterly earnings data on Wednesday. The business services provider reported $1.10 earnings per share for the quarter, topping the consensus estimate of $1.00 by $0.10, Briefing.com reports. The business had revenue of $2.50 billion during the quarter, compared to analysts’ expectations of $2.49 billion. Cintas had a return on equity of 37.82% and a net margin of 16.38%. The firm’s revenue was up 6.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.70 EPS. Cintas updated its FY25 guidance to $4.17-4.25 EPS and its FY 2025 guidance to 4.170-4.250 EPS.

Cintas Trading Down 2.3 %

Shares of NASDAQ CTAS traded down $4.66 during mid-day trading on Friday, hitting $202.35. The company’s stock had a trading volume of 2,332,229 shares, compared to its average volume of 1,492,194. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.74 and a quick ratio of 1.52. The stock has a market cap of $20.53 billion, a price-to-earnings ratio of 14.09, a price-to-earnings-growth ratio of 4.09 and a beta of 1.32. The company’s fifty day simple moving average is $208.63 and its 200-day simple moving average is $183.66. Cintas has a one year low of $119.69 and a one year high of $211.57.

Cintas Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 3rd. Investors of record on Thursday, August 15th were given a $0.39 dividend. This represents a $1.56 annualized dividend and a yield of 0.77%. The ex-dividend date was Thursday, August 15th. Cintas’s dividend payout ratio (DPR) is presently 10.77%.

Wall Street Analyst Weigh In

CTAS has been the topic of a number of research reports. Royal Bank of Canada boosted their target price on shares of Cintas from $181.00 to $215.00 and gave the stock a “sector perform” rating in a research report on Thursday. Redburn Atlantic assumed coverage on Cintas in a research report on Friday, August 9th. They issued a “neutral” rating and a $167.50 target price for the company. Robert W. Baird boosted their price target on shares of Cintas from $194.00 to $209.00 and gave the company a “neutral” rating in a report on Thursday. Barclays lifted their target price on shares of Cintas from $210.00 to $245.00 and gave the company an “overweight” rating in a research report on Friday. Finally, Truist Financial lifted their price objective on Cintas from $212.50 to $225.00 and gave the company a “buy” rating in a report on Tuesday, September 17th. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating and seven have issued a buy rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $199.63.

Cintas declared that its Board of Directors has approved a share buyback plan on Tuesday, July 23rd that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the business services provider to purchase up to 1.3% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board believes its shares are undervalued.

Insider Activity at Cintas

In other Cintas news, Director Gerald S. Adolph sold 4,400 shares of Cintas stock in a transaction on Wednesday, July 24th. The shares were sold at an average price of $191.43, for a total transaction of $842,292.00. Following the completion of the sale, the director now owns 125,808 shares of the company’s stock, valued at approximately $24,083,425.44. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 15.10% of the stock is currently owned by company insiders.

About Cintas

Cintas Corporation engages in the provision of corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments. The company rents and services uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, as well as sells uniforms.