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The Zacks Consensus Estimate for the company’s earnings has remained stable in the past 60 days. The company has a stellar earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average beat being 4.3%.
Let’s see how things have shaped up for Cintas’ fiscal fourth-quarter earnings.
Factors to Note
A strong demand environment and the introduction of additional products and services to customers are expected to have driven the Uniform Rental and Facility Services segment’s performance in the fiscal fourth quarter. Also, improving operational productivity and effective pricing actions are likely to have been beneficial for the segment. We expect segmental revenues to increase 7.4% from the year-ago levels.
Increasing demand for AED Rentals, eyewash stations and WaterBreak products and high customer retention levels are likely to have supported the performance of the First Aid and Safety Services segment. We expect this segment’s revenues to increase 10.5% from the year-ago reported number.
Strong growth across the uniform direct sale and fire protection services has been driving the performance of the All-Other business. Our estimate for the segment’s quarterly revenues implies 7.6% growth from the year-ago reported number.
Also, synergistic gains from the acquisitions of Paris Uniform Services (March 2024) and SITEX (February 2024) are expected to have boosted revenues. While the Paris Uniform Services buyout has enhanced Cintas’ presence in Pennsylvania, New York, Maryland and West Virginia, the SITEX acquisition has boosted its market position in the U.S. central Midwest region.
CTAS is anticipated to have put up a healthy margin performance, supported by its focus on operational executions and pricing actions. We expect the company’s fiscal fourth-quarter operating margin to improve 70 basis points from the prior-year levels.
However, the company has been witnessing escalating costs of sales, and selling, general and administrative (SG&A) expenses, which are likely to weigh on its bottom-line results. For the quarter under review, we anticipate SG&A expenses to rise nearly 9% from the year-earlier levels. Also, given the company’s exposure to international markets, foreign currency headwinds are likely to have affected its profitability.
Our proven model doesn’t conclusively predict an earnings beat for Cintas this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, but that’s not the case here, as elaborated below.
CTAS has an Earnings ESP of -1.12% as the Most Accurate Estimate is pegged at $3.76, which is lower than the Zacks Consensus Estimate of $3.80. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Here are three companies, which according to our model, have the right combination of elements to post an earnings beat this reporting cycle.
Allegion plc (ALLE - Free Report) has an Earnings ESP of +1.42% and a Zacks Rank of 2, at present. It is slated to release second-quarter results on Jul 24. ALLE delivered a trailing four-quarter earnings surprise of 8.6%, on average.
Hubbell Incorporated (HUBB - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of 2, at present. It is slated to release second-quarter results on Jul 23. HUBB delivered a trailing four-quarter earnings surprise of 3.4%, on average.
Packaging Corporation of America (PKG - Free Report) has an Earnings ESP of +0.67% and a Zacks Rank of 2, at present. It is slated to release second-quarter results on Jul 23. PKG delivered a trailing four-quarter earnings surprise of 12.3%, on average.
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Cintas (CTAS) Gears Up to Report Q4 Earnings: What to Expect
Cintas Corporation (CTAS - Free Report) is scheduled to release fourth-quarter fiscal 2024 (ended May 31, 2024) results on Jul 18, before market open.
The Zacks Consensus Estimate for the company’s earnings has remained stable in the past 60 days. The company has a stellar earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average beat being 4.3%.
Let’s see how things have shaped up for Cintas’ fiscal fourth-quarter earnings.
Factors to Note
A strong demand environment and the introduction of additional products and services to customers are expected to have driven the Uniform Rental and Facility Services segment’s performance in the fiscal fourth quarter. Also, improving operational productivity and effective pricing actions are likely to have been beneficial for the segment. We expect segmental revenues to increase 7.4% from the year-ago levels.
Increasing demand for AED Rentals, eyewash stations and WaterBreak products and high customer retention levels are likely to have supported the performance of the First Aid and Safety Services segment. We expect this segment’s revenues to increase 10.5% from the year-ago reported number.
Strong growth across the uniform direct sale and fire protection services has been driving the performance of the All-Other business. Our estimate for the segment’s quarterly revenues implies 7.6% growth from the year-ago reported number.
Also, synergistic gains from the acquisitions of Paris Uniform Services (March 2024) and SITEX (February 2024) are expected to have boosted revenues. While the Paris Uniform Services buyout has enhanced Cintas’ presence in Pennsylvania, New York, Maryland and West Virginia, the SITEX acquisition has boosted its market position in the U.S. central Midwest region.
CTAS is anticipated to have put up a healthy margin performance, supported by its focus on operational executions and pricing actions. We expect the company’s fiscal fourth-quarter operating margin to improve 70 basis points from the prior-year levels.
However, the company has been witnessing escalating costs of sales, and selling, general and administrative (SG&A) expenses, which are likely to weigh on its bottom-line results. For the quarter under review, we anticipate SG&A expenses to rise nearly 9% from the year-earlier levels. Also, given the company’s exposure to international markets, foreign currency headwinds are likely to have affected its profitability.
Cintas Corporation Price and EPS Surprise
Cintas Corporation price-eps-surprise | Cintas Corporation Quote
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Cintas this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, but that’s not the case here, as elaborated below.
CTAS has an Earnings ESP of -1.12% as the Most Accurate Estimate is pegged at $3.76, which is lower than the Zacks Consensus Estimate of $3.80. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
CTAS has a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With the Favorable Combination
Here are three companies, which according to our model, have the right combination of elements to post an earnings beat this reporting cycle.
Allegion plc (ALLE - Free Report) has an Earnings ESP of +1.42% and a Zacks Rank of 2, at present. It is slated to release second-quarter results on Jul 24. ALLE delivered a trailing four-quarter earnings surprise of 8.6%, on average.
Hubbell Incorporated (HUBB - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of 2, at present. It is slated to release second-quarter results on Jul 23. HUBB delivered a trailing four-quarter earnings surprise of 3.4%, on average.
Packaging Corporation of America (PKG - Free Report) has an Earnings ESP of +0.67% and a Zacks Rank of 2, at present. It is slated to release second-quarter results on Jul 23. PKG delivered a trailing four-quarter earnings surprise of 12.3%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.