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Cintas Corporation Provides Downbeat Guidance For FY 2014 (CTAS)

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Cintas Corporation (NASDAQ: CTAS) reported late on Monday that its fiscal fourth-quarter profit increased 9%; however, share of the uniform supplier tumbled nearly 4% in afterhours trading as it provided lackluster guidance for the new fiscal year, citing reforms in healthcare.

The Company said that Washington’s Affordable Care Act could force some of its customers to postpone their hiring decisions, which in turn could impact the demand for uniforms.

The Cincinnati OH based Company manufactures and supplies uniforms to varied sectors in North America. Besides, it also sells several other products like first aid kits, fire protection instruments, restroom supplies etc.

For the three months period ended May 31, Cintas Corporation reported net income of $86 million or 69 cents a share compared to a profit of $78.6 million or 60 cents a share, in the year-earlier quarter.

Analysts’ consensus estimate was for earnings of 70 cents a share, according to a data compiled by FactSet.

Revenue climbed 7% to $1.13 billion, which was in-line with expectations.

For the fiscal year 2014, the Company expects earnings to be in the range of $2.66 to $2.75 a share on revenue of $4.5 billion to $4.6 billion. Analysts polled by FactSet had forecasted earnings of $2.80 a share on revenue of $4.56 billion.

For the recently concluded fiscal year, the company said that profit rose 6% to $315.4 million or $2.52 a share up from a net income of $297.6 million or $2.27 a share, in the last fiscal year. Revenue increased 5% to $3.04 billion from $2.91 billion.

 








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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.

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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.

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