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Cintas (CTAS) to Report Q4 Earnings: What's in the Offing?

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Cintas Corporation (CTAS - Free Report) is scheduled to release fourth-quarter fiscal 2022 (ended May 31, 2022) results on Jul 14, before market open.

CTAS’s earnings surpassed estimates in all the preceding four quarters, the average being 8.2%. In the last reported quarter, earnings were $2.69, above the Zacks Consensus Estimate of $2.47 by 8.9%.

Let’s see how things have shaped up for Cintas so far this earnings season.

Factors to Impact Q4 Results

Cintas’ increased capacity of several customers' businesses is likely to have benefited its Uniform Rental and Facility Services segment. The Zacks Consensus Estimate for Uniform Rental and Facility Services’ revenues indicates an 8.2% increase from the year-ago fiscal quarter’s reported figure.

CTAS’ First Aid and Safety Services segment is expected to have benefited from strength across its first aid cabinet service and uniform direct sale businesses in the fiscal fourth quarter. The Zacks Consensus Estimate for the First Aid and Safety Services segment’s revenues suggests a 13.9% increase from the year-ago fiscal quarter’s actuals. Also, robust momentum across Cintas’s uniform direct sale and fire protection services businesses is expected to have positively contributed to its performance in the fiscal fourth quarter. The consensus mark for All Other segment’s revenues in the fiscal fourth quarter hints at a 45% jump from the year-ago fiscal quarter’s reported number.

CTAS’ focus on operational execution and pricing actions is expected to have aided its margin performance in the fiscal fourth quarter. Cintas anticipates revenues of $1.96-$2.02 billion for the fourth quarter of fiscal 2022. The midpoint of the guided range — 1.99 billion — indicates an increase of 8.2% from the year-ago fiscal quarter’s tally. Earnings per share are anticipated to be $2.54-$2.74 for the fiscal fourth quarter. The mid-point of the guided range — $2.64 — indicates an increase of 6.9% from the prior-year fiscal quarter’s reading.

However, escalating costs and expenses, primarily due to high cost of uniform rental and facility services, might have hurt Cintas’ bottom line in the to-be-reported fiscal quarter.

The Zacks Consensus Estimate for Cintas’ revenues for the fiscal fourth quarter is pegged at $2,001 million, suggesting a rise of 9% from the year-ago fiscal quarter’s reported figure. The Zacks Consensus Estimate for earnings per share is pegged at $2.68, suggesting an increase of 8.5% from the year-ago fiscal quarter’s reported number.

Earnings Whispers

Our quantitative model does not predict a beat for Cintas this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) increases the odds of an earnings beat. But that is not the case here, as we will see below.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Cintas has an Earnings ESP of -2.06%, as the Most Accurate Estimate is pegged at $2.62, lower than the Zacks Consensus Estimate of $2.68.
 

Cintas Corporation Price, Consensus and EPS Surprise

Cintas Corporation Price, Consensus and EPS Surprise

Cintas Corporation price-consensus-eps-surprise-chart | Cintas Corporation Quote

Zacks Rank: Cintas carries a Zacks Rank #3 (Hold).

Key Picks

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to beat on earnings this season:

Lindsay Corporation (LNN - Free Report) has an Earnings ESP of +27.47% and a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Its earnings surprise in the last four quarters was 25.6%, on average.

Crane Holdings, Co. (CR - Free Report) has an Earnings ESP of +6.89% and a Zacks Rank of 2 (Buy), currently. It delivered a trailing four-quarter earnings surprise of 22.2%, on average.

Zebra Technologies Corporation (ZBRA - Free Report) has an Earnings ESP of +2.15% and a Zacks Rank of 3 at present. ZBRA’s earnings surprise in the last four quarters was 8.76%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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