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. ...

It has been about a month since the last earnings report for Cintas (CTAS) . Shares have added about 1% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Cintas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Cintas' Q1 Earnings & Revenues Surpass Estimates, View ...

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 ...

I recommended a buy rating for Cintas Corporation (NASDAQ: CTAS ) when I wrote about it in January, as I expected revenue growth to accelerate and margin to continue expanding. Based on my current outlook and analysis, I I consider an investment ideal if it performs its core business in a sector projected to experience structural (organic) growth in excess of GDP growth over the next 5-10 years; profits from sustainable competitive advantages that translate into attractive unit economics; In the hands of co ...

Key Takeaways Cintas exceeded profit and sales estimates and raised its outlook as it had record-setting performances for the first quarter. Revenue and gross margin as a percentage of revenue set record highs, and shares hit an all-time high Wednesday. CEO Todd Schneider said the company continued to see strong demand from existing and new customers. Cintas (CTAS) shares hit an all-time high Wednesday as the uniform and other workplace supplies provider posted better-than-expected results and raised its gu ...

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]