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Cintas (CTAS) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. The power of a changing earnings ...

Cintas Corporation (CTAS) has been benefiting from strength in its Uniform Rental and Facility Services segment, driven by strong demand in the energy market. The segment's revenues rose 9.4% year over year in the fiscal third quarter (ended February 2024). Strong demand for its products and services, pricing actions and robust customer retention have been boosting the First Aid and Safety Services segment's performance. Revenues from the segment climbed 13.4% year over year in the fiscal third quarter. Giv ...

Nvidia[ticker symb=NVDA] and JPMorgan Chase (JPM) lead this weekend's watch list of five stocks near buy points entering a pivotal stretch for the S&P 500. Along with AI chip leader NVDA and banking behemoth JPM, the list includes enterprise data storage firm Pure Storage (PSTG), work supplies and uniform provider Cintas (CTAS) and homebuilder PulteGroup (PHM).X Nvidia is part of the IBD Leaderboard portfolio of elite stocks. The flagship IBD 50 list of leading growth stocks includes both NVDA and CTAS. Cin ...

Cintas (CTAS) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, CTAS crossed above the 20-day moving average, suggesting a short-term bullish trend.A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages.The 2 ...

Cintas Corporation (CTAS) recently partnered with Google Cloud to develop a Generative AI (gen AI) Powered Knowledge Center to strengthen its digital transformation, which is already in progress.Per the deal, Google Cloud's gen AI platform-Vertex AI will be utilized by CTAS to build the knowledge center, i.e., its own gen AI-powered search engines to empower the company’s employees. With the help of the gen AI-powered search engines, the employees and partners will be able to easily access a big set of CTAS ...

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Expanded partnership will improve employee-partner and customer experience with Vertex AI Search CINCINNATI, April 9, 2024 /PRNewswire/ -- Cloud Next '24, LAS VEGAS -- Cintas Corporation (NASDAQ: CTAS), a leading provider of business to business services, and Google Cloud today announced an expanded partnership to support Cintas' ongoing digital transformation. Cintas will leverage Vertex AI–Google Cloud's generative AI (gen AI) platform–to develop an internal knowledge center that will empower its employee ...

Financial Performance - Net income for the nine months ended February 29, 2024, was $1,157,277, compared to $1,001,809 for the same period in 2023, reflecting a 15.5% increase[33] - Net income for the period ending February 29, 2024, was $397,579 thousand, contributing to retained earnings of $10,341,248 thousand[38] - Net income for the nine months ended February 29, 2024, was $1.157 billion, with diluted earnings per share of $11.15[56] - Net income for the three months ended February 29, 2024 was $397.6 million, compared to $325.8 million for the same period in 2023, representing a 22% increase[78] - Basic earnings per share for the three months ended February 29, 2024 was $3.90, up from $3.19 for the same period in 2023, a 22.3% increase[78] - For the nine months ended February 29, 2024, net income was $1.16 billion, compared to $1.00 billion for the same period in 2023, a 15.5% increase[78] - Total revenue increased 9.9% to $2,406.2 million for the three months ended February 29, 2024, compared to $2,190.0 million for the three months ended February 28, 2023[106] - Organic revenue growth rate was 7.7% for the three months ended February 29, 2024[106] - Other revenue increased 11.8% to $529.5 million for the three months ended February 29, 2024, compared to $473.8 million for the three months ended February 28, 2023[107] - Total revenue for the nine months ended February 29, 2024, was $7,125.7 million, compared to $6,531.3 million for the nine months ended February 28, 2023[99] - Income before income taxes for the nine months ended February 29, 2024, was $1,446.5 million, compared to $1,247.3 million for the nine months ended February 28, 2023[99] Cash Flow and Liquidity - Cash and cash equivalents increased to $128,483 as of February 29, 2024, from $124,149 as of February 28, 2023[13] - Net cash provided by operating activities for the nine months ended February 29, 2024, was $1,386,741, compared to $1,044,191 for the same period in 2023[16] - Capital expenditures for the nine months ended February 29, 2024, were $307,558, compared to $224,116 for the same period in 2023[16] - Dividends paid for the nine months ended February 29, 2024, were $393,310, compared to $332,421 for the same period in 2023[16] - Dividends paid during the period ending February 29, 2024, amounted to $137,598 thousand[38] - Cash and cash equivalents as of February 29, 2024, were $128.483 million, classified as Level 1 in the fair value hierarchy[52] - The credit agreement has a capacity of $2.0 billion under the revolving credit facility, with an accordion feature allowing for an additional $500.0 million[113] - Cintas was in compliance with all debt covenants for all periods presented, with no significant defaults impacting liquidity or future capital raising[115] Assets and Liabilities - Accounts receivable, net, increased to $1,262,077 as of February 29, 2024, from $1,152,993 as of February 28, 2023[13] - Inventories, net, decreased to $451,215 as of February 29, 2024, from $506,604 as of February 28, 2023[13] - Total current assets increased to $3,030,996 as of February 29, 2024, from $2,938,459 as of February 28, 2023[13] - Total shareholders' equity increased to $4,234,083 as of February 29, 2024, from $3,863,986 as of February 28, 2023[13] - Total assets at fair value as of February 29, 2024, amounted to $215.384 million, including $86.901 million from interest rate lock agreements[52] - Total assets as of February 29, 2024, were $8,978.9 million, compared to $8,466.0 million as of February 28, 2023[99] - Goodwill balance as of February 29, 2024, was $3,212.4 million, compared to $3,056.2 million as of June 1, 2023[109] - Total debt due after one year as of February 29, 2024, was $2,474.9 million[112] - The carrying value of Cintas' debt as of February 29, 2024 was $2.49 billion, with a fair value of $2.41 billion[87] Revenue Breakdown - Total revenue for February 2024 was $2,406,173 thousand, with Uniform Rental and Facility Services contributing $1,876,642 thousand (78.0% of total revenue)[46] - First Aid and Safety Services revenue for February 2024 was $262,602 thousand, representing 10.9% of total revenue[46] - Fire Protection Services revenue for February 2024 was $182,410 thousand, accounting for 7.6% of total revenue[46] - Uniform Direct Sales revenue for February 2024 was $84,519 thousand, making up 3.5% of total revenue[46] - Approximately 95% of the company's revenue is derived from route servicing of Uniform Rental and Facility Services, First Aid and Safety Services, and Fire Protection Services[46] Share Repurchases and Dividends - Repurchase of common stock for the nine months ended February 29, 2024, amounted to $468,146, compared to $370,917 for the same period in 2023[16] - The company repurchased common stock worth $45,018 thousand during the period ending February 29, 2024[38] - The company has authorized share buyback programs totaling $2.5 billion, with $1.5 billion announced on July 27, 2021, and $1.0 billion on July 26, 2022[56] Operating Expenses and Costs - Amortization expense for service contracts and other assets for the nine months ended February 29, 2024, was $117.9 million[60] - Operating lease costs for the nine months ended February 29, 2024, were $61.5 million[72] - The weighted-average remaining lease term for operating leases as of February 29, 2024, was 5.30 years with a weighted-average discount rate of 3.38%[74] - The total present value of lease payments for operating leases as of February 29, 2024, was $190.490 million[74] - Inventory obsolescence reserves were $74.1 million as of February 29, 2024, down from $80.1 million as of May 31, 2023[64] - Total future amortization expense is projected to be $703.3 million[111] Acquisitions and Investments - The fair value of assets acquired during the nine months ended February 29, 2024 was $204.1 million, compared to $35.8 million for the same period in 2023[93] - Total consideration for acquisitions, net of cash acquired, was $185.0 million for the nine months ended February 29, 2024, up from $33.0 million for the same period in 2023[93] - Service contracts acquired during the nine months ended February 29, 2024 totaled $29.4 million, with $25.4 million allocated to Uniform Rental and Facility Services[84] Tax and Legal Matters - Cintas' effective tax rate was 19.9% for the three months ended February 29, 2024, down from 22.1% for the same period in 2023[92] - Unrecognized tax benefits were $27.9 million as of February 29, 2024, compared to $29.3 million as of May 31, 2023[116] - The balance of unrecognized tax benefits is not expected to materially change for the fiscal year ending May 31, 2024[117] - A class action lawsuit alleging ERISA violations was settled in principle in November 2023, with an immaterial payment covered by insurance[127] Comprehensive Income and Other Financial Metrics - Comprehensive income for the period ending February 29, 2024, was $390,563 thousand, compared to $317,835 thousand in the previous year[35] - The amortization of interest rate locks resulted in a decrease to other comprehensive income of $1.5 million for both the three months ended February 29, 2024 and February 28, 2023[88] - Accumulated other comprehensive income (loss) balance was $86.323 million as of February 29, 2024, down from $93.339 million as of November 30, 2023[121] - Amortization of interest rate locks, net of tax, was $1.524 million for the three months ended February 29, 2024, and $4.461 million for the nine months ended February 29, 2024[123] Segment Performance and Corporate Assets - Cintas evaluates operating segment performance based on revenue and income before income taxes, with corporate assets including cash and cash equivalents[125]

Cintas Corporation (CTAS) is poised to gain from strong segmental performances and product enhancement efforts despite rising costs and forex woes.Let us discuss the factors that should influence investors to retain the stock for the time being.Growth CatalystsBusiness Strength: Strong segmental performances are driving Cintas’ top line. Strong momentum in the energy end market is driving revenues in the Uniform Rental and Facility Services segment. Also, investments in technology and the company’s capabili ...