Cintas (CTAS) Q4 Earnings & Revenues Beat Estimates, View Up

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]