Markets were on a rally in the first half of this year after a solid 2023. However, volatility has returned to Wall Street and all three major indexes have retreated from their record highs in the past two weeks. Tech stocks, which drove the rally in the first half, have been particularly taking a hit. On Jul 24, all three major stock indexes dropped significantly, with the S&P 500 and Nasdaq experiencing their biggest declines since 2022. The S&P 500 slid 2.31%, closing at 5,427.13 points, while the Nasdaq ...

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Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With 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 that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Below, we take a look at Cintas (CTAS) , a ...

Loading... "Strong cash generation continued to fuel our balanced capital allocation strategy, focusing on new products and services for our customers and new technology to further enhance our position for the long-term, investing in strategic acquisitions and on returning capital to shareholders," said Todd M. Schneider, Cintas' President and Chief Executive Officer. These analysts made changes to their price targets on Cintas following the announcement. Loading... Cintas reported fourth-quarter earnings p ...

JHVEPhoto July 18th ended up being a really great day for shareholders of Cintas Corporation (NASDAQ:CTAS). The company, which focuses on renting out and selling uniforms to businesses, not to mention other products and services like restroom supplies, mops, first aid kits, and more, saw its shares spike by 5.4%. This was in response to management reporting financial results for the final quarter of the company's 2024 fiscal year and providing guidance for what 2025 might look like. Based on management's ow ...

Core Insights - Cintas reported better-than-expected profit and sales, with revenue reaching an all-time high of $2.47 billion, up 8.2% year-over-year [1][2] - The company provided strong fiscal 2025 guidance, anticipating adjusted EPS between $16.25 and $16.75, and sales between $10.16 billion and $10.31 billion [3] - Cintas shares have increased approximately 30% this year, reaching record levels following the positive earnings report [1][3] Financial Performance - For fiscal 2024 fourth-quarter, Cintas posted adjusted EPS of $3.99, exceeding forecasts [2] - Revenue growth was attributed to acquiring new customers, increased sales to existing customers, and supply chain improvements [2] Strategic Outlook - CEO Todd Schneider emphasized strong customer retention and confidence in the company's strategy moving forward [2][3] - The company is focused on reducing inefficiencies within its operations to enhance profitability [2]

Core Insights - Cintas Corporation reported strong financial performance for fiscal 2024, with earnings per share of $3.99, exceeding the Zacks Consensus Estimate of $3.80, and a year-over-year increase of 19.8% [12] - Total revenues reached $2.47 billion, slightly above the consensus estimate of $2.46 billion, marking an 8.2% increase year over year, driven by higher segmental revenues [12] - The company expects fiscal 2025 revenues to be between $10.16 billion and $10.31 billion, with a midpoint of $10.235 billion, which is below the Zacks Consensus Estimate of $10.25 billion [7] Financial Performance - Cintas' cash and cash equivalents at the end of fiscal 2024 were $342 million, up from $124.1 million at the end of fiscal 2023, while long-term debt decreased to approximately $2.03 billion from $2.49 billion [2] - The cost of sales increased by 5% year over year to $1.3 billion, representing about 50.8% of net sales, while gross profit rose 11.6% to $1.2 billion, resulting in a gross margin of 49.2%, up from 47.7% in the previous year [4] - Selling and administrative expenses totaled $667.9 million, reflecting an 8.1% increase from the previous year, and represented 27% of net sales [5] Cash Flow and Shareholder Returns - Cintas generated net cash of $2.1 billion from operating activities, a 32.8% increase from the previous year, with capital expenditures totaling $307.6 million, up 30.2% year over year [6] - Free cash flow increased by 31.9% year over year to $1.7 billion, with share repurchases amounting to $700 million compared to $398.9 million in the prior year [6] - Dividend payments totaled $530.9 million, reflecting an approximate 18% year-over-year increase [6] Segment Performance - Revenues from the Uniform Rental and Facility Services segment, which accounted for 77.3% of net sales, totaled $1.9 billion, up 7.8% year over year [13] - Revenues from the First Aid and Safety Services segment, representing 11.3% of net sales, reached $277.6 million, an increase of 11.2% year over year [14] - Revenues from All Other businesses, which accounted for 11.4% of net sales, totaled $282.1 million, reflecting a 10.2% year-over-year increase [3] Guidance and Expectations - For fiscal 2025, Cintas anticipates earnings per share in the range of $16.25 to $16.75, with a midpoint of $16.5, which is above the consensus estimate of $16.4 per share [7] - Interest expenses are projected to be approximately $106 million, an increase from $95 million in fiscal 2024, with an expected effective tax rate of 20.4%, consistent with fiscal 2024 [8]

Cintas Corporation (NASDAQ:CTAS) Q4 2024 Results Conference Call July 18, 2024 10:00 AM ET Company Participants Jared Mattingley - VP and Treasurer, IR Todd Schneider - President and CEO Mike Hansen - EVP and CFO Conference Call Participants Joshua Chan - UBS Heather Balsky - Bank of America Andy Wittmann - R.W. Baird George Tong - Goldman Sachs Tim Mulrooney - William Blair Andrew Steinerman - JPMorgan Jasper Bibb - Truist Securities Manav Patnaik - Barclays Scott Schneeberger - Oppenheimer Adam Parrington ...

Core Viewpoint - Cintas Corporation (NASDAQ:CTAS) has reported strong Q2 earnings, leading to a positive outlook for the stock, which is expected to continue its upward trajectory despite potential economic challenges [1][5]. Valuation and Growth - The stock is currently viewed as having a stretched valuation, suggesting that new investments should wait for a price correction before buying [6]. - Cintas reported fiscal Q4 revenue of $2.47 billion, an increase of 8.2% from $2.28 billion a year ago, and $60 million higher than the previous quarter [7]. - Organic revenue growth was reported at 7.5%, indicating strong underlying business performance [7]. Margin Expansion - Gross margin increased to $1.22 billion, up 11.6% from $1.09 billion a year ago, with a gross margin percentage of 49.2%, up 150 basis points from 47.7% [8]. - Operating income rose 16.3% to $547.6 million, with operating margins expanding to 22.2%, an increase of 160 basis points from the previous year [8]. Cash Flow and Shareholder Returns - Cash flow from operating activities reached $2.08 billion, a 30% increase from $1.60 billion last year [9]. - Cintas paid cash dividends of $530.9 million, an 18.0% increase over the previous year, and repurchased 1,623,870 shares at an average price of $609.04, totaling $1.0 billion [9]. Future Outlook - For fiscal 2025, management expects revenue between $10.16 billion and $10.31 billion, representing a growth of 5.9% to 7.4% [10]. - The company anticipates organic revenue growth of 6.4% to 8.0%, with potential for further growth through acquisitions [10]. - The EPS guidance is set at $16.50 at the midpoint, indicating a high valuation at 46X, but consistent growth and share repurchases are expected to support this valuation [10].

CTAS $756.62 ▼ Dividend Yield 0.71% Add to Watchlist That's why the company will split its shares this fall: the current high share prices and the potential for another triple-digit gain. Persistent business trends drive its share price, including healthy, resilient labor markets and an improving outlook for easing economic headwinds through lower interest rates. Investors looking to ride the Cintas wave can buy in now, wait to see if a dip forms after the split, and buy more later. Cintas had a mixed quart ...