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Based in Cincinnati, Ohio, Cintas Corporation (CTAS) provides corporate identity uniforms, business services, and safety products across the U.S., Canada, and Latin America, boasting a market cap of $71.1 billion. The company is expected to announce its fiscal Q4 earnings results on Thursday, July 11.
Ahead of the event, analysts expect Cintas to report a profit of $3.80 per share, a 14.1% jump from $3.33 per share in the prior year quarter. The company has consistently surpassed Wall Street’s bottom-line estimates in its recent quarterly reports.
Cintas’ EPS of $3.84 for the last reported quarter surged 22.3% year over year, beating the consensus estimate by 7.9%. With relentless dedication and sharp execution from its partners, the company delivered record-breaking revenue, strong new business, high retention, and effective cross-selling, driving not just impressive EPS growth but also cash flow and capital flexibility.
For fiscal 2024, analysts expect Cintas to report EPS of $14.96, up 15.2% from $12.99 in fiscal 2023. Fiscal 2025 EPS is expected to grow 9.6% annually to $16.40.
CTAS stock has rallied 43.1% over the past 52 weeks, outperforming the broader S&P 500 Index's ($SPX) 24.8% gains and also edging past the S&P 500 Industrial Sector SPDR’s (XLI) 15.6% returns over the same time frame.
Investors flocked to Cintas stock this year, driven by impressive performance milestones. Its shares surged 8.3% on March 27, reflecting investor enthusiasm sparked by Cintas' exceptional execution. Its Q3 revenue rose 9.9% to $2.4 billion, marking a record high, accompanied by a 220 basis point rise in gross margin to 49.4%.
This surge was fueled by the company's strong performance in various business segments. Cintas secured substantial new business and effectively leveraged cross-selling opportunities. Investors were particularly impressed by Cintas' innovative use of cutting-edge technology and operational efficiencies, which contributed to a double-digit EPS growth.
Moreover, Cintas maintained strong cash flow and made strategic investments, reinforcing its financial health and future growth prospects. Even amid economic uncertainty and a competitive landscape, Cintas' consistent track record, strategic focus on innovation, and unwavering commitment to customer service instilled confidence in investors.
Analysts remain cautiously optimistic about Cintas’ stock, with an overall “Moderate Buy” consensus rating. Out of 18 analysts covering the stock, nine remain upbeat, advising a “Strong Buy” rating, one recommends a “Moderate Buy,” seven suggest a “Hold,” and the remaining one gives a “Strong Sell.”
The average analyst price target for Cintas is $703.07, indicating a marginal potential upside. However, the Street-high target price of $790 suggests the stock could rally as much as 12.8% from the current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
