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Cintas Q1 Preview: Can the Earnings Streak Continue?

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The Zacks Industrial Products Sector has performed marginally worse than the general market year-to-date, down roughly 22% vs. the S&P 500’s decline of 20%.

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Image Source: Zacks Investment Research

Cintas Corp. (CTAS - Free Report) , a company in the sector, is on deck to unveil Q1 earnings on September 28th before market open.

Cintas Corporation provides specialized services to businesses of all types throughout North America.

As it stands, CTAS carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of a C.

How does the company shape up leading into its quarterly release?

Let’s find out.

Share Performance & Valuation

CTAS shares have been notably defensive in 2022, down roughly 11% and widely outperforming the general market.

Zacks Investment Research
Image Source: Zacks Investment Research

However, over the last month, shares have marginally underperformed the general market, declining 8.5%.

Zacks Investment Research
Image Source: Zacks Investment Research

Cintas Corp. shares are expensive – the company’s 32.9X forward earnings multiple is above its five-year median of 31.4X and represents a sizable 117% premium relative to its Zacks Sector.

CTAS carries a Value Style Score of a D.

Zacks Investment Research
Image Source: Zacks Investment Research

Quarterly Estimates

A singular analyst has upped their quarterly earnings outlook over the last 60 days, pushing the Consensus Estimate Trend up marginally. The Zacks Consensus EPS estimate of $3.15 suggests notable Y/Y earnings growth of 1.3%.

Zacks Investment Research
Image Source: Zacks Investment Research

The company’s top line is also in exceptional shape – the Zacks Consensus Sales Estimate of $2.1 billion pencils in a robust 10% Y/Y uptick.

Quarterly Performance & Market Reactions

CTAS has an incredible earnings track record – the company hasn’t reported earnings below the Zacks Consensus EPS Estimate since 2016. Just in its latest print, the company penciled in a strong 9.3% bottom-line beat.

Revenue has also consistently exceeded expectations – Cintas has penciled in nine revenue beats over its last ten quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.

Zacks Investment Research
Image Source: Zacks Investment Research

Further, it’s worth noting that shares have moved upwards following its latest back-to-back quarterly releases.

Putting Everything Together

CTAS shares have been stronger than the general market overall in 2022, but over the last month, they’ve marginally lagged.

The company’s valuation levels appear slightly stretched, with its forward earnings multiple sitting above its five-year median and Zacks Sector average.

A singular analyst has upped their bottom-line outlook over the last several months, with estimates alluding to a Y/Y increase in both revenue and earnings.

Further, the company has consistently exceeded quarterly estimates, and the market has reacted favorably following each of its last two prints.

Heading into the report, Cintas Corp. (CTAS - Free Report) carries a Zacks Rank #3 (Hold) with an Earnings ESP Score of -0.7%.


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