Core Insights - Cintas reported $2.56 billion in revenue for the quarter ended November 2024, marking a year-over-year increase of 7.8% and an EPS of $1.09 compared to $0.90 a year ago, exceeding the Zacks Consensus Estimate [1] - The company achieved a revenue surprise of +0.05% and an EPS surprise of +7.92% compared to analyst expectations [1] Revenue Performance - Total Revenue from Uniform Rental and Facility Services was $1.99 billion, slightly above the average estimate of $1.98 billion, reflecting a year-over-year change of +7.6% [3] - Total Revenue from Other segments was $571.37 million, slightly below the average estimate of $577 million [3] - Revenue from All Other segments was $272.01 million, compared to the estimated $280.89 million, representing a +4.5% change year-over-year [3] - Revenue from First Aid and Safety Services was $299.37 million, exceeding the average estimate of $296.71 million, with a year-over-year change of +12.4% [3] Operating Income - Operating income from Uniform Rental and Facility Services was $472.36 million, surpassing the average estimate of $438.55 million [3] - Operating income from First Aid and Safety Services was $75.22 million, exceeding the estimated $68.50 million [3] - Operating income from All Other segments was $43.81 million, slightly below the average estimate of $46.55 million [3] Stock Performance - Cintas shares have returned -6.6% over the past month, compared to a -0.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Cintas (CTAS) came out with quarterly earnings of $1.09 per share, beating the Zacks Consensus Estimate of $1.01 per share. This compares to earnings of $0.90 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.92%. A quarter ago, it was expected that this uniform rental company would post earnings of $1 per share when it actually produced earnings of $1.10, delivering a surprise of 10%.Over the last four quarters, the company h ...

[Press Release Highlights](index=1&type=section&id=Press%20Release%20Highlights) [Fiscal 2025 Second Quarter Financial Performance](index=1&type=section&id=Fiscal%202025%20Second%20Quarter%20Financial%20Performance) Cintas Corporation achieved strong financial growth in FY2025 Q2, with significant increases in revenue, gross profit, operating income, net income, and diluted EPS Fiscal 2025 Second Quarter Key Financial Data (as of November 30, 2024) | Metric | FY2025 Q2 (million USD) | FY2024 Q2 (million USD) | YoY Growth (%) | | :----------------------------------- | :---------------------- | :---------------------- | :------------- | | Revenue | 2,560 | 2,380 | 7.8% | | Organic Revenue Growth Rate | - | - | 7.1% | | Gross Profit | 1,280 | 1,140 | 11.8% | | Gross Margin | 49.8% | 48.0% | +180 bps | | Operating Income | 591.4 | 499.7 | 18.4% | | Operating Income as % of Revenue | 23.1% | 21.0% | +210 bps | | Net Income | 448.5 | 374.6 | 19.7% | | Diluted EPS | 1.09 | 0.90 | 21.1% | | Quarterly Dividend | 158.0 | - | 14.9% | [Management Commentary and Fiscal 2025 Outlook](index=1&type=section&id=Management%20Commentary%20and%20Fiscal%202025%20Outlook) CEO Todd M. Schneider expressed satisfaction with strong Q2 results, raising FY2025 revenue and diluted EPS guidance, emphasizing sustained value creation - CEO Todd M. Schneider noted strong revenue and earnings growth, excellent margin expansion, and robust cash generation in Q2, attributed to outstanding employee execution and a comprehensive value proposition for customers[8](index=8&type=chunk) Fiscal 2025 Annual Guidance Update | Metric | Original Guidance Range (billion USD) | Updated Guidance Range (billion USD) | | :---------- | :------------------------------------ | :----------------------------------- | | Revenue | 10.220 - 10.320 | 10.255 - 10.320 | | Metric | Original Guidance Range (USD) | Updated Guidance Range (USD) | | :---------- | :---------------------------- | :--------------------------- | | Diluted EPS | 4.17 - 4.25 | 4.28 - 4.34 | [Fiscal 2025 Guidance Details](index=2&type=section&id=Fiscal%202025%20Guidance%20Details) [Revenue Guidance](index=2&type=section&id=Revenue%20Guidance) The company raised its full-year FY2025 revenue guidance, provided workday-adjusted growth rates, and clarified key underlying assumptions Fiscal 2025 Total Revenue Guidance (million USD) | Metric | FY2024 | Original Guidance Low End | Original Guidance High End | Updated Guidance Low End | Updated Guidance High End | | :-------------- | :-------- | :------------------------ | :------------------------- | :----------------------- | :------------------------ | | Total Revenue | 9,596.6 | 10,220.0 | 10,320.0 | 10,255.0 | 10,320.0 | | YoY Growth Rate | - | 6.5% | 7.5% | 6.9% | 7.5% | Workday-Adjusted Revenue Guidance (million USD) | Metric | FY2024 | Original Guidance Low End | Original Guidance High End | Updated Guidance Low End | Updated Guidance High End | | :----------------------- | :-------- | :------------------------ | :------------------------- | :----------------------- | :------------------------ | | Workday-Adjusted Revenue | 9,596.6 | 10,298.6 | 10,399.4 | 10,333.9 | 10,399.4 | | YoY Growth Rate | - | 7.3% | 8.4% | 7.7% | 8.4% | Organic Revenue Growth Rate Guidance | Metric | Original Guidance Low End | Original Guidance High End | Updated Guidance Low End | Updated Guidance High End | | :---------------------- | :------------------------ | :------------------------- | :----------------------- | :------------------------ | | Organic Revenue Growth Rate | 7.0% | 8.1% | 7.0% | 7.7% | - Revenue guidance assumes no future acquisitions, constant foreign currency exchange rates, and no significant economic disruptions or recessions[10](index=10&type=chunk) [Diluted EPS Guidance](index=2&type=section&id=Diluted%20EPS%20Guidance) The company raised its FY2025 diluted EPS guidance, providing assumptions including projections for net interest expense and effective tax rate Fiscal 2025 Diluted EPS Guidance (USD) | Metric | FY2024 | Original Guidance Low End | Original Guidance High End | Updated Guidance Low End | Updated Guidance High End | | :-------------- | :----- | :------------------------ | :------------------------- | :----------------------- | :------------------------ | | Diluted EPS | 3.79 | 4.17 | 4.25 | 4.28 | 4.34 | | YoY Growth Rate | - | 10.0% | 12.1% | 12.9% | 14.5% | - FY2025 net interest expense is projected to be approximately **$101 million**, up from **$95 million** in FY2024, primarily due to increased variable-rate debt[13](index=13&type=chunk) - The effective tax rate for FY2025 is anticipated to be **20.2%**[14](index=14&type=chunk) - Diluted EPS guidance excludes future share repurchases or significant economic disruptions or recessions[15](index=15&type=chunk) [Company Information and Disclosures](index=3&type=section&id=Company%20Information%20and%20Disclosures) [Company Profile](index=3&type=section&id=Company%20Profile) Cintas Corporation, a Fortune 500 company listed on Nasdaq (CTAS), provides essential services like uniforms, mats, and safety products to businesses - Cintas Corporation provides products and services to over **one million businesses** of all sizes, including uniforms, mats, mops, restroom supplies, first aid and safety products, fire extinguishers, and safety training, preparing clients for the workday[16](index=16&type=chunk) - Cintas is a publicly traded **Fortune 500 company** on the Nasdaq Global Select Market under the ticker CTAS, and a component of the S&P 500 and Nasdaq 100 indices[16](index=16&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements about future business plans and expectations, subject to various risks and uncertainties, with no obligation for public updates - This press release contains forward-looking statements about the company's future business plans and expectations, subject to various risks, uncertainties, potentially inaccurate assumptions, and other factors that could cause actual results to differ from those stated[17](index=17&type=chunk) - Risk factors include, but are not limited to: higher-than-anticipated operating costs (e.g., energy and fuel), decreased sales volume, customer attrition, acquisition integration costs, supply chain constraints, macroeconomic conditions (inflationary pressures and high interest rates), changes in global trade policies, fluctuations in material and labor costs, union activity, failure to comply with government regulations, foreign currency exchange rate fluctuations, environmental compliance costs, ability to achieve ESG goals, cybersecurity threats, and litigation outcomes[17](index=17&type=chunk) - Cintas undertakes no obligation to publicly revise or update any forward-looking statements, except as required by law[17](index=17&type=chunk) [Contact Information](index=3&type=section&id=Contact%20Information) Contact details for investor relations and financial executives are provided for further information - Contacts: J. Michael Hansen (Executive Vice President and Chief Financial Officer) - 513-972-2079; Jared S. Mattingley (Vice President, Treasurer, and Investor Relations) - 513-972-4195[18](index=18&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Condensed Statements of Income (Three Months)](index=4&type=section&id=Consolidated%20Condensed%20Statements%20of%20Income%20(Three%20Months)) Cintas Corporation reported year-over-year growth in revenue, gross profit, operating income, net income, and a **21.1% increase** in diluted EPS for the three months ended November 30, 2024 Consolidated Condensed Statements of Income (Three Months, as of November 30, in thousand USD, except per share data) | Metric | 2024 | 2023 | % Change | | :----------------------------------- | :-------- | :-------- | :------- | | Revenue: | | | | | Uniform Rental and Facility Services | 1,990,410 | 1,850,542 | 7.6% | | Other | 571,373 | 526,635 | 8.5% | | **Total Revenue** | **2,561,783** | **2,377,177** | **7.8%** | | Costs and Expenses: | | | | | Cost of Uniform Rental and Facility Services | 1,014,052 | 974,231 | 4.1% | | Cost of Other | 271,028 | 261,398 | 3.7% | | Selling and Administrative Expenses | 685,313 | 641,865 | 6.8% | | **Operating Income** | **591,390** | **499,683** | **18.4%** | | Interest Income | (962) | (769) | 25.1% | | Interest Expense | 26,665 | 26,590 | 0.3% | | Income Before Income Taxes | 565,687 | 473,862 | 19.4% | | Income Tax Expense | 117,192 | 99,249 | 18.1% | | **Net Income** | **448,495** | **374,613** | **19.7%** | | Basic Earnings Per Share | 1.11 | 0.92 | 20.7% | | Diluted Earnings Per Share | 1.09 | 0.90 | 21.1% | [Consolidated Condensed Statements of Income (Six Months)](index=5&type=section&id=Consolidated%20Condensed%20Statements%20of%20Income%20(Six%20Months)) Cintas Corporation reported year-over-year growth in revenue, operating income, net income, and a **19.7% increase** in diluted EPS for the six months ended November 30, 2024 Consolidated Condensed Statements of Income (Six Months, as of November 30, in thousand USD, except per share data) | Metric | 2024 | 2023 | % Change | | :----------------------------------- | :-------- | :-------- | :------- | | Revenue: | | | | | Uniform Rental and Facility Services | 3,924,249 | 3,677,367 | 6.7% | | Other | 1,139,121 | 1,042,140 | 9.3% | | **Total Revenue** | **5,063,370** | **4,719,507** | **7.3%** | | Costs and Expenses: | | | | | Cost of Uniform Rental and Facility Services | 1,995,215 | 1,921,814 | 3.8% | | Cost of Other | 539,321 | 514,574 | 4.8% | | Selling and Administrative Expenses | 1,376,413 | 1,282,880 | 7.3% | | **Operating Income** | **1,152,421** | **1,000,239** | **15.2%** | | Interest Income | (2,212) | (1,191) | 85.7% | | Interest Expense | 52,284 | 51,134 | 2.2% | | Income Before Income Taxes | 1,102,349 | 950,296 | 16.0% | | Income Tax Expense | 201,821 | 190,598 | 5.9% | | **Net Income** | **900,528** | **759,698** | **18.5%** | | Basic Earnings Per Share | 2.22 | 1.86 | 19.4% | | Diluted Earnings Per Share | 2.19 | 1.83 | 19.7% | [Consolidated Condensed Balance Sheets](index=9&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) Cintas Corporation's consolidated condensed balance sheets as of November 30, 2024, show increases in total assets and total liabilities, with a slight decrease in total shareholders' equity Consolidated Condensed Balance Sheets (in thousand USD) | Metric | November 30, 2024 | May 31, 2024 | | :----------------------------------- | :---------------- | :----------- | | **Assets:** | | | | Total Current Assets | 3,170,391 | 3,185,207 | | Property and Equipment, Net | 1,590,688 | 1,534,168 | | Investments | 340,134 | 302,212 | | Goodwill | 3,323,043 | 3,212,424 | | **Total Assets** | **9,366,529** | **9,168,817** | | **Liabilities and Shareholders' Equity:** | | | | Total Current Liabilities | 2,007,767 | 1,828,519 | | Total Long-Term Liabilities | 3,065,656 | 3,023,926 | | **Total Shareholders' Equity** | **4,293,106** | **4,316,372** | | **Total Liabilities and Shareholders' Equity** | **9,366,529** | **9,168,817** | [Consolidated Condensed Statements of Cash Flows](index=10&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) Cintas Corporation's cash flow statement for the six months ended November 30, 2024, shows increased operating cash flow, but net outflows from investing and financing led to a net decrease in cash Consolidated Condensed Statements of Cash Flows (Six Months, as of November 30, in thousand USD) | Activity Type | 2024 | 2023 | | :--------------------------------------- | :-------- | :------ | | Net Cash Provided by Operating Activities | 908,136 | 729,631 | | Net Cash Used in Investing Activities | (349,003) | (282,195) | | Net Cash Used in Financing Activities | (776,945) | (485,810) | | Effect of Exchange Rate Changes | (1,808) | (219) | | Net Decrease in Cash and Cash Equivalents | (219,620) | (38,593) | | Cash and Cash Equivalents at Beginning of Period | 342,015 | 124,149 | | Cash and Cash Equivalents at End of Period | 122,395 | 85,556 | [Supplemental Financial Data](index=6&type=section&id=Supplemental%20Financial%20Data) [Gross Margin and Net Income Margin Results](index=6&type=section&id=Gross%20Margin%20and%20Net%20Income%20Margin%20Results) Cintas Corporation's gross margin and net income margin improved in both the second quarter and first six months of fiscal 2025, indicating enhanced profitability Gross Margin and Net Income Margin Results | Metric | November 30, 2024 (Three Months) | November 30, 2023 (Three Months) | November 30, 2024 (Six Months) | November 30, 2023 (Six Months) | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Uniform Rental and Facility Services Gross Margin | 49.1% | 47.4% | 49.2% | 47.7% | | Other Gross Margin | 52.6% | 50.4% | 52.7% | 50.6% | | **Total Gross Margin** | **49.8%** | **48.0%** | **49.9%** | **48.4%** | | **Net Income Margin** | **17.5%** | **15.8%** | **17.8%** | **16.1%** | [Reconciliation of Non-GAAP Financial Measures](index=6&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) The company provides reconciliations for non-GAAP financial measures, including free cash flow and organic revenue growth, to enhance investor understanding of its performance - The company provides non-GAAP financial measures such as free cash flow and organic revenue growth to supplement GAAP financial statements, aiming to enhance investor understanding of its past performance and future prospects[26](index=26&type=chunk) [Computation of Free Cash Flow](index=6&type=section&id=Computation%20of%20Free%20Cash%20Flow) Computation of Free Cash Flow (Six Months, as of November 30, in thousand USD) | Metric | 2024 | 2023 | | :----------------------------------- | :------ | :------ | | Net Cash Provided by Operating Activities | 908,136 | 729,631 | | Capital Expenditures | (194,337) | (200,527) | | **Free Cash Flow** | **713,799** | **529,104** | - Management uses free cash flow to evaluate the company's financial performance, considering it useful for investors as it links operating cash flow to capital expenditures for sustaining, improving, and growing business operations[28](index=28&type=chunk) [Computation of Organic Revenue Growth](index=7&type=section&id=Computation%20of%20Organic%20Revenue%20Growth) Computation of Organic Revenue Growth | Metric | Three Months (as of November 30) | Six Months (as of November 30) | | :----------------------------------- | :------------------------------- | :----------------------------- | | Revenue Growth Rate | 7.8% | 7.3% | | Workday-Adjusted Revenue Growth Rate | 7.8% | 8.1% | | Acquisition and Foreign Currency Impact, Net | (0.7)% | (0.5)% | | **Organic Revenue Growth Rate** | **7.1%** | **7.6%** | - Management believes organic revenue growth is valuable to investors as it reflects revenue performance compared to prior periods with the same number of revenue days, excluding the impact of acquisitions and foreign currency fluctuations[30](index=30&type=chunk) [Supplemental Segment Data](index=8&type=section&id=Supplemental%20Segment%20Data) Cintas Corporation provides supplemental data by business segment, detailing each segment's revenue, gross profit, selling and administrative expenses, and operating income Supplemental Segment Data (Three Months, as of November 30, in thousand USD) | Metric | Uniform Rental and Facility Services | First Aid and Safety Services | All Other | Total | | :----------------------------------- | :----------------------------------- | :---------------------------- | :-------- | :-------- | | **2024:** | | | | | | Revenue | 1,990,410 | 299,367 | 272,006 | 2,561,783 | | Gross Profit | 976,358 | 171,485 | 128,860 | 1,276,703 | | Selling and Administrative Expenses | 503,999 | 96,262 | 85,052 | 685,313 | | Operating Income | 472,359 | 75,223 | 43,808 | 591,390 | | **2023:** | | | | | | Revenue | 1,850,542 | 266,401 | 260,234 | 2,377,177 | | Gross Profit | 876,311 | 145,316 | 119,921 | 1,141,548 | | Selling and Administrative Expenses | 476,700 | 86,785 | 78,380 | 641,865 | | Operating Income | 399,611 | 58,531 | 41,541 | 499,683 | Supplemental Segment Data (Six Months, as of November 30, in thousand USD) | Metric | Uniform Rental and Facility Services | First Aid and Safety Services | All Other | Total | | :----------------------------------- | :----------------------------------- | :---------------------------- | :-------- | :-------- | | **2024:** | | | | | | Revenue | 3,924,249 | 591,934 | 547,187 | 5,063,370 | | Gross Profit | 1,929,034 | 340,288 | 259,512 | 2,528,834 | | Selling and Administrative Expenses | 1,010,237 | 193,777 | 172,399 | 1,376,413 | | Operating Income | 918,797 | 146,511 | 87,113 | 1,152,421 | | **2023:** | | | | | | Revenue | 3,677,367 | 527,094 | 515,046 | 4,719,507 | | Gross Profit | 1,755,553 | 291,092 | 236,474 | 2,283,119 | | Selling and Administrative Expenses | 949,414 | 172,980 | 160,486 | 1,282,880 | | Operating Income | 806,139 | 118,112 | 75,988 | 1,000,239 |

Core Insights - Analysts project Cintas (CTAS) will announce quarterly earnings of $1.01 per share, reflecting a 12.2% year-over-year increase [1] - Revenue is expected to reach $2.56 billion, marking a 7.7% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' projections [1] Revenue Estimates - Total Revenue from Uniform Rental and Facility Services is estimated at $1.98 billion, suggesting a year-over-year change of +7.1% [4] - Revenue from All Other segments is projected to reach $280.89 million, indicating a year-over-year change of +7.9% [4] - Revenue from First Aid and Safety Services is expected to be $296.71 million, reflecting an 11.4% year-over-year increase [4] Income Estimates - Income before income taxes from Uniform Rental and Facility Services is likely to reach $438.55 million, up from $399.61 million in the same quarter last year [5] - Income before income taxes from First Aid and Safety Services is projected at $68.50 million, compared to $58.53 million a year ago [5] - Income before income taxes from All Other segments is estimated at $46.55 million, up from $41.54 million in the previous year [6] Market Performance - Cintas shares have experienced a -1.9% change in the past month, contrasting with a +1.2% move of the Zacks S&P 500 composite [7] - Cintas holds a Zacks Rank 2 (Buy), indicating expectations to outperform the overall market in the near future [7]

The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Cintas (CTAS) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.Cintas is one of 213 companies in the Industrial Products group. The Industrial Products group currently sits at #15 within the Zacks Se ...

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Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

Cintas Corporation (CTAS) is well-poised to benefit from strength across its business, acquisitions, focus on improving the product line and operational excellence. The company remains focused on investing in growth opportunities and solidifying its long-term market position.CTAS, which has a market capitalization of $89.4 billion, currently carries a Zacks Rank #2 (Buy). Let’s delve into the factors that have been aiding the firm for a while now.Business Strength: Cintas has been experiencing strong moment ...

The economic data has been mixed for the last year but remains sufficient to sustain solid GDP growth, indicating growing activity, which is good news for business services companies. Business services companies provide value to other businesses with products and services that reduce time and costs, helping to sustain margins in critical industries. The critical detail for investors is that these businesses are supported by economic tailwinds in 2025, produce ample cash flow, and pay investors to own them. ...

Core Viewpoint - Cintas reported strong Q1 fiscal 2025 earnings and revenues, surpassing estimates, with a positive outlook for the fiscal year despite a recent downward trend in estimates [2][9]. Financial Performance - Q1 fiscal 2025 earnings were $1.10 per share, exceeding the Zacks Consensus Estimate of $1.00, marking an 18.3% year-over-year increase [2]. - Total revenues reached $2.502 billion, slightly above the consensus estimate of $2.497 billion, reflecting a 6.8% year-over-year growth driven by higher segmental revenues [2]. - Organic sales increased by 8% year over year [2]. Segmental Results - Uniform Rental and Facility Services segment generated $1.93 billion in revenues, up 5.9% year over year, accounting for 77.3% of total net sales [3]. - First Aid and Safety Services segment reported revenues of $292.6 million, a 12.2% increase year over year, representing 11.7% of total net sales [3]. - Other businesses, categorized as All Other, generated $275.2 million, up 8% year over year, making up 11% of total net sales [3]. Margin Profile - Cost of sales increased by 4.1% year over year to $1.25 billion, representing approximately 49.9% of net sales [4]. - Gross profit rose by 9.6% to $1.25 billion, with a gross margin of 50.1%, compared to 48.7% in the previous year [4]. - Operating income increased by 12.1% year over year to $561 million, with an operating margin of 22.4% [4]. Balance Sheet & Cash Flow - Cash and cash equivalents at the end of Q1 fiscal 2025 were $101.4 million, up from $88.1 million a year ago [5]. - Long-term debt decreased to approximately $2.03 billion from $2.48 billion [5]. - Net cash generated from operating activities was $466.7 million, a 38.5% increase year over year, while free cash flow rose by 62.4% to $373.8 million [5]. FY25 Guidance - Cintas expects revenues for fiscal 2025 to be between $10.22 billion and $10.32 billion, an increase from the previous guidance of $10.16 billion to $10.31 billion [5]. - Earnings per share are projected to be in the range of $4.17 to $4.25, up from the earlier estimate of $4.06 to $4.19 [5]. Estimates Movement - There has been a downward trend in estimates for Cintas over the past month, although the magnitude of these revisions has been net zero [7][9]. VGM Scores - Cintas holds a Growth Score of A but lags in Momentum Score with a C, and has a Value Score of D, placing it in the bottom 40% for this investment strategy [8].