We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cintas (CTAS) Q4 Earnings & Revenues Beat Estimates, Up Y/Y
Read MoreHide Full Article
Cintas Corporation (CTAS - Free Report) reported fourth-quarter fiscal 2022 (ended May 31, 2022) earnings of $2.81 per share, beating the Zacks Consensus Estimate of $2.68. The bottom line increased 13.8% year over year despite high costs.
Total revenues of $2,074.7 million also outperformed the Zacks Consensus Estimate of $2,001 million. The top line improved 13% year over year due to higher segmental revenues. Organic sales were up 12.7% year over year.
Segmental Results
The company has two reportable segments — Uniform Rental and Facility Services; and First Aid and Safety Services. Other businesses like Uniform Direct Sale and Fire Protection Services are included in All Other. Quarterly sales data is briefly discussed below.
Revenues from the Uniform Rental and Facility Services segment (representing 78.6% of the reported quarter’s net sales) were $1,630.21 million, increasing 11.1% year over year.
Revenues from the First Aid and Safety Services segment (representing 10.5% of the reported quarter’s net sales) totaled $218.22 million, increasing 16.7% year over year.
Cintas Corporation Price, Consensus and EPS Surprise
Revenues from the All Other business (representing 10.9% of the reported quarter’s net sales) were $226.25 million, increasing 24.4% year over year.
Margin Profile
In the quarter under review, Cintas’ cost of sales (comprising costs related to uniform rental and facility services and others) increased 15.5% year over year to $1,128.49 million. It represented 54.4% of net sales. Gross profit increased 10.1% to $946.2 million. Gross margin was 45.6%, down from 46.8% in the year-ago quarter. High labor and purchasing costs played spoilsports in the quarter.
Selling and administrative expenses totaled $541.76 million, reflecting a 7.8% increase from the year-ago figure. It represented 26.1% of net sales. The operating margin (adjusted) in the reported quarter was 19.5%. Interest expenses decreased 6.1% to $23.06 million.
Balance Sheet and Cash Flow
Exiting the fiscal fourth quarter, Cintas had cash and cash equivalents of $90.47 million, up 7.6% sequentially. Long-term debt was $2,483.93 million, up 84.9% sequentially.
In fiscal 2022, the company repaid debts of $1.2 billion.
In fiscal 2022, it generated net cash of $1.54 billion from operating activities, increasing 13% from the year-ago period. Capital expenditure totaled $240.67 million, reflecting a year-over-year increase of 67.7%. Free cash flow increased 6.5% to $1.3 billion.
In fiscal 2022, the company repurchased shares worth $1.53 billion, up from $554.12 million in the year-ago period. Dividend payments totaled $375.12 million in fiscal 2022.
Fiscal 2023 Outlook
For fiscal 2023, Cintas expects revenues of $8.47-$8.58 billion. The Zacks Consensus Estimate for the same stands at $8.32 billion. The company expects earnings per share of $11.90-$12.30. The mid-point of the guided range — $12.10 — lies below the Zacks Consensus Estimate of $12.29.
Adjusted operating income is expected to be $1.68 billion-$1.73 billion in fiscal 2023, compared with $1.55 billion reported in fiscal 2022. Interest expense is estimated to be approximately $110 million for the fiscal year. Effective tax rate is predicted to be around 20%, higher than 17.9% in fiscal 2022. The expected increase in tax rate is likely to have a negative impact of approximately 32 cents on fiscal 2023 earnings.
Zacks Rank & Key Picks
Cintas carries a Zacks Rank #3 (Hold). Some better-ranked stocks within the broader Zacks Industrial Products sector are as follows:
MRC Global (MRC - Free Report) sports a Zacks Rank #1 (Strong Buy). The company’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters while meeting the same in one. The average surprise was 140.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
MRC Global has an estimated earnings growth rate of 222.2% for the current year. The company’s shares have surged49% so far this year.
Greif Inc. (GEF - Free Report) flaunts a Zacks Rank #1. The company’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 22.9%.
Greif has an estimated earnings growth rate of 36.8% for the current year. The company’s shares have gained around 2% in the year-to-date period.
Titan International carries a Zacks Rank #1. The company’s earnings have trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 56.4%.
Titan International has an estimated earnings growth rate of 164.7% for the current year. The company’s shares have rallied 26.4% in the year-to-date period.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Cintas (CTAS) Q4 Earnings & Revenues Beat Estimates, Up Y/Y
Cintas Corporation (CTAS - Free Report) reported fourth-quarter fiscal 2022 (ended May 31, 2022) earnings of $2.81 per share, beating the Zacks Consensus Estimate of $2.68. The bottom line increased 13.8% year over year despite high costs.
Total revenues of $2,074.7 million also outperformed the Zacks Consensus Estimate of $2,001 million. The top line improved 13% year over year due to higher segmental revenues. Organic sales were up 12.7% year over year.
Segmental Results
The company has two reportable segments — Uniform Rental and Facility Services; and First Aid and Safety Services. Other businesses like Uniform Direct Sale and Fire Protection Services are included in All Other. Quarterly sales data is briefly discussed below.
Revenues from the Uniform Rental and Facility Services segment (representing 78.6% of the reported quarter’s net sales) were $1,630.21 million, increasing 11.1% year over year.
Revenues from the First Aid and Safety Services segment (representing 10.5% of the reported quarter’s net sales) totaled $218.22 million, increasing 16.7% year over year.
Cintas Corporation Price, Consensus and EPS Surprise
Cintas Corporation price-consensus-eps-surprise-chart | Cintas Corporation Quote
Revenues from the All Other business (representing 10.9% of the reported quarter’s net sales) were $226.25 million, increasing 24.4% year over year.
Margin Profile
In the quarter under review, Cintas’ cost of sales (comprising costs related to uniform rental and facility services and others) increased 15.5% year over year to $1,128.49 million. It represented 54.4% of net sales. Gross profit increased 10.1% to $946.2 million. Gross margin was 45.6%, down from 46.8% in the year-ago quarter. High labor and purchasing costs played spoilsports in the quarter.
Selling and administrative expenses totaled $541.76 million, reflecting a 7.8% increase from the year-ago figure. It represented 26.1% of net sales. The operating margin (adjusted) in the reported quarter was 19.5%. Interest expenses decreased 6.1% to $23.06 million.
Balance Sheet and Cash Flow
Exiting the fiscal fourth quarter, Cintas had cash and cash equivalents of $90.47 million, up 7.6% sequentially. Long-term debt was $2,483.93 million, up 84.9% sequentially.
In fiscal 2022, the company repaid debts of $1.2 billion.
In fiscal 2022, it generated net cash of $1.54 billion from operating activities, increasing 13% from the year-ago period. Capital expenditure totaled $240.67 million, reflecting a year-over-year increase of 67.7%. Free cash flow increased 6.5% to $1.3 billion.
In fiscal 2022, the company repurchased shares worth $1.53 billion, up from $554.12 million in the year-ago period. Dividend payments totaled $375.12 million in fiscal 2022.
Fiscal 2023 Outlook
For fiscal 2023, Cintas expects revenues of $8.47-$8.58 billion. The Zacks Consensus Estimate for the same stands at $8.32 billion. The company expects earnings per share of $11.90-$12.30. The mid-point of the guided range — $12.10 — lies below the Zacks Consensus Estimate of $12.29.
Adjusted operating income is expected to be $1.68 billion-$1.73 billion in fiscal 2023, compared with $1.55 billion reported in fiscal 2022. Interest expense is estimated to be approximately $110 million for the fiscal year. Effective tax rate is predicted to be around 20%, higher than 17.9% in fiscal 2022. The expected increase in tax rate is likely to have a negative impact of approximately 32 cents on fiscal 2023 earnings.
Zacks Rank & Key Picks
Cintas carries a Zacks Rank #3 (Hold). Some better-ranked stocks within the broader Zacks Industrial Products sector are as follows:
MRC Global (MRC - Free Report) sports a Zacks Rank #1 (Strong Buy). The company’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters while meeting the same in one. The average surprise was 140.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
MRC Global has an estimated earnings growth rate of 222.2% for the current year. The company’s shares have surged49% so far this year.
Greif Inc. (GEF - Free Report) flaunts a Zacks Rank #1. The company’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 22.9%.
Greif has an estimated earnings growth rate of 36.8% for the current year. The company’s shares have gained around 2% in the year-to-date period.
Titan International carries a Zacks Rank #1. The company’s earnings have trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 56.4%.
Titan International has an estimated earnings growth rate of 164.7% for the current year. The company’s shares have rallied 26.4% in the year-to-date period.