Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a growth stock that can live up to its true potential can be a tough task. In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end. However, it's pretty easy to find cutting-edge growth stocks w ...

Have you been paying attention to shares of Cintas (CTAS) ? Shares have been on the move with the stock up 3.2% over the past month. The stock hit a new 52-week high of $212.22 in the previous session. Cintas has gained 40.4% since the start of the year compared to the 14.6% move for the Zacks Industrial Products sector and the 38.4% return for the Zacks Uniform and Related industry. What's Driving the Outperformance? The stock has an impressive record of positive earnings surprises, as it hasn't missed our ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 6800 Cintas Boulevard P.O. Box 625737 Cincinnati, Ohio 45262-5737 (Address of Principal Executive Offices) (Zip Code) Title of each class Trading symbol(s) Name of each exchange on which registered Common stock, no par value CTASThe NASDAQ Stock Market LLC (NASDAQ Global Select Market) Class Outstanding September 30, 2024 Common Stock, no par value 403,298,633 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ...

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task. By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss. However, the task of finding cutting-edge growth stocks is made easy ...

Group 1 - The core recommendation is a buy rating for Cintas Corporation (NASDAQ: CTAS) based on expected revenue growth acceleration and margin expansion [1] - The ideal investment criteria include operating in a sector with structural growth exceeding GDP growth over the next 5-10 years, sustainable competitive advantages, competent management, and fair valuation [1]

Core Insights - Cintas exceeded profit and sales estimates for the first quarter of fiscal 2025, achieving record-setting performances and raising its outlook [1][2] - The company reported a fiscal 2025 first-quarter earnings per share (EPS) of $1.10, with revenue increasing 6.8% year-over-year to an all-time high of $2.50 billion [2] - Gross margin rose 9.7% to $1.25 billion, with gross margin as a percentage of revenue reaching a record 50.1%, up 140 basis points [3] Revenue and Growth - Cintas experienced organic growth of 7% in Uniform Rental and Facility Services, 14% in First Aid and Safety Services, and 13.8% in Fire Protection Services, while Uniform Direct Sale unit saw a decline of 1.8% [3] - The company anticipates full-year EPS in the range of $4.17 to $4.25, an increase from the previous forecast of $4.06 to $4.19 [4] Market Performance - Shares of Cintas reached an all-time high of $209.58, rising 1.4% shortly before the market close, and are up 38% year-to-date [5]

Cintas Corporation (CTAS) reported first-quarter fiscal 2025 (ended Aug. 31, 2024) earnings of $1.10 per share, which beat the Zacks Consensus Estimate of $1.00. The bottom line increased 18.3% year over year despite an increase in operating costs. Total revenues of $2.502 billion marginally outperformed the consensus estimate of $2.497 billion. The top line rose 6.8% year over year, driven by higher segmental revenues. Organic sales were up 8% year over year. Cintas' Segmental Results The company has two r ...

Financial Data and Key Metrics - Q1 2025 total revenue grew 6.8% YoY to $2.5 billion, an all-time high for quarterly revenue [3] - Organic revenue growth adjusted for acquisitions, FX, and workdays was 8.0% [4] - Gross margin increased 9.7% YoY to a record 50.1% [6] - Operating income as a percentage of revenue reached 22.4%, up 12.1% YoY [6] - Diluted EPS grew 18.3% to $1.10, reflecting a recent 4-for-1 stock split [6] - Free cash flow increased 62.4% YoY, enabling capital deployment across priorities [7] Business Segment Performance - Uniform rental and facility services organic growth was 7% [11] - First aid and safety services organic growth was 14% [11] - Fire protection services organic growth was 13.8% [11] - Uniform direct sales organic growth declined 1.8% [11] - Gross margin by segment: uniform rental (49.3%), first aid and safety (57.7%), fire protection (50.2%), uniform direct sales (40.6%) [11] Market and Strategic Focus - Strong demand across healthcare, hospitality, education, and state/local government verticals [5] - Continued focus on serving 16 million businesses in North America [5] - Investments in technology, including partnerships with Verizon, Google, and SAP, to improve customer experience and operational efficiency [7][8] - Capital allocation priorities include strategic investments, acquisitions, and returning capital to shareholders via dividends and share repurchases [7][8] Management Commentary on Outlook - Raised FY2025 revenue guidance to $10.22-$10.32 billion, representing 6.5%-7.5% growth [9] - Expected organic growth rate of 7.0%-8.1% for FY2025 [9] - Diluted EPS guidance raised to $4.17-$4.25, reflecting 10.0%-12.1% growth [9] - Confidence in long-term growth driven by operational excellence and strategic investments [9] Q&A Session Highlights Question: Customer purchasing behavior and macro environment - No significant changes in customer behavior or demand observed [20] - Strong demand continues across key verticals [20] Question: Growth in healthcare, hospitality, education, and government verticals - Investments in these verticals are paying off, with examples of innovative solutions like garment dispensing and privacy curtain management in healthcare [21][22][23][24] Question: New sales breakdown between market share wins and no-programmer conversions - Approximately two-thirds of new customers come from the no-programmer market [26] - Wins are broad-based across industries and business sizes [27] Question: Merchandise amortization trends - Material cost trends are favorable, driven by supply chain improvements and garment sharing [28] - Expect continued tailwinds in gross margin from these factors [28] Question: SmartTruck and Google partnership progress - SmartTruck technology improves route optimization and customer interaction time [30][31] - Google partnership enhances operational insights and efficiency [31] Question: Fire protection business growth and margin profile - Fire protection business is growing strongly, with a 50% gross margin in Q1 [32][34] - SAP implementation may pressure margins in FY2025 but is expected to yield long-term benefits [34][35] Question: Margin expansion drivers and sustainability - Margin expansion driven by sourcing, supply chain, technology, and operational efficiencies [37] - No one-time factors; incremental margins expected to remain in the 25%-35% range [37][56] Question: Competitive dynamics and M&A - M&A remains a key strategy, with a focus on deals that create value for customers and shareholders [40][59] - Industry consolidation is monitored but not expected to significantly alter competitive dynamics [66][67] Question: Uniform direct sales trends - Direct sales business remains lumpy, with no significant changes in underlying trends [71] - Positioned well for future growth despite recent declines [71] Question: Free cash flow strength and working capital - Strong free cash flow in Q1 driven by timing factors and accounts payable improvements [72] - Expect free cash flow conversion of net income to remain in the 90%-100% range for FY2025 [72] Question: Pricing and customer reception - Price adjustments are lower than peak inflation levels and closer to historical norms [73] - Customer reception remains challenging but manageable [73] Question: Hiring market conditions - Hiring market has eased from pandemic levels but remains competitive [74] - Continued focus on attracting and retaining talent to support growth [74]

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Core Insights - Cintas reported revenue of $2.5 billion for the quarter ended August 2024, reflecting a year-over-year increase of 6.8% and an EPS of $1.10, up from $0.93 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate by 0.18%, while the EPS surpassed the consensus estimate by 10% [1] Revenue Breakdown - Total Revenue from Uniform Rental and Facility Services was $1.93 billion, slightly below the average estimate of $1.94 billion, marking a year-over-year increase of 5.9% [3] - Total Revenue from Other services reached $567.75 million, exceeding the average estimate of $554.74 million [3] - Revenue from All Other services was $275.18 million, surpassing the estimated $272.30 million, representing an 8% increase year-over-year [3] - Revenue from First Aid and Safety Services was $292.57 million, exceeding the average estimate of $282.59 million, with a year-over-year increase of 12.2% [3] Stock Performance - Cintas shares have returned 2.5% over the past month, outperforming the Zacks S&P 500 composite, which saw a 2% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [4]