Stock Market Watch

Cintas Corp. Tops Q1 Expectations

by ·


Cintas Corporation (NASDAQ: CTAS) said late on Thursday that sales rose across all segments in the fiscal first quarter, resulting in slight improvement in the bottom line even as operating margins contracted. Shares gained in aftermarket hours as sales topped analysts’ expectation while earnings matched estimation.

For the fiscal 2014, the Company reiterated its sales expectation and lifted earnings outlook.

For the latest period, the Cincinnati, Ohio-based company posted a profit of $78 million or 63 cents a share compared to a net income of $77 million or 60 cents a share, in the year-earlier quarter.

Analysts polled by Thomson Reuters had forecasted earnings of 63 cents a share.

Sales during the quarter increased 6.6% to $1.12 billion from $1.05 billion, in the same period of last year. Analysts’ consensus estimate was for earnings of $1.10 billion.

While revenue from rental uniforms and ancillary products sales rose 5% in the fiscal first quarter, revenue from other services climbed nearly 11%.

Operating margin fell 70 basis points. One less workday and expansion in route capacity put pressure on operating margin.

The Company repurchased 3 million of its common shares for nearly $147 million in the latest quarter and into September. The Company announced a share buyback program of $500 million in July.

For the fiscal year 2014, the Company expects EPS to come in the range of $2.70 to $2.79, up from its initial projection of $2.66 to $2.75. Revenue is anticipated in the range of $4.5 billion o $4.6 billion while analysts’ forecast was for EPS of $2.72 on revenue of $4.55 billion.

 








More Posts by this author

edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

Tags:

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

You may also like...