Cintas Beats Q1 Earnings On Margin Strength, Boosts Outlook

Corporate apparel company Cintas Corporation CTAS shares are trading relatively flat on Wednesday.

The company reported first-quarter earnings per share of $1.10, beating the analyst consensus of 95 cents. Quarterly sales of $2.50 billion (+6.8%) marginally outpaced the street view of $2.495 billion.

Gross profit for the first quarter was $1.25 billion compared to $1.14 billion in last year’s first quarter, an increase of 9.7%. Gross margin expanded to 50.1% from 48.7%.

Cash flow from operating activities was $466.7 million compared to $336.9 million in the year-ago period, an increase of 38.5%.

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“Cintas continued to reinvest in our customers and our employee-partners to ensure we are best positioned to deliver long-term value for our shareholders,” said Todd M. Schneider, Cintas’ President and Chief Executive Officer.

Cintas exited the quarter with cash and equivalents worth $101.373 million. Net inventories totaled $399.078 million.

Outlook: The company raised the FY25 annual revenue expectations from a range of $10.16 billion to $10.31 billion to a range of $10.22 billion to $10.32 billion versus $10.28 billion estimate.

Cintas has raised its FY25 EPS guidance from $4.06 – $4.19 to $4.17 – $4.25 (estimate: $4.17), reflecting the impact of its four-for-one stock split that took effect on September 11.

Price Action: CTAS shares are trading higher by 0.66% to $206.20 at last check Wednesday.