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Cintas (CTAS) Q4 Earnings & Revenues Beat Estimates, View Up
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Cintas Corporation (CTAS - Free Report) reported fourth-quarter fiscal 2024 (ended May 31, 2024) earnings of $3.99 per share, which beat the Zacks Consensus Estimate of $3.80. The bottom line increased 19.8% year over year despite an increase in operating costs.
Total revenues of $2.47 billion marginally outperformed the consensus estimate of $2.46 billion. The top line rose 8.2% year over year, driven by higher segmental revenues. Organic sales were up 7.5% 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 77.3% of the reported quarter’s net sales) totaled $1.9 billion, up 7.8% year over year. Our estimate for segmental revenues was $1.9 billion.
Revenues from the First Aid and Safety Services segment (representing 11.3% of the reported quarter’s net sales) totaled $277.6 million, up 11.2% year over year. Our estimate for segmental revenues was $276 million.
Revenues from All Other business (representing 11.4% of the reported quarter’s net sales) totaled $282.1 million, up 10.2% year over year. Our estimate for segmental revenues was $281.5 million.
Cintas Corporation Price, Consensus and EPS Surprise
Cintas’ cost of sales (comprising costs related to uniform rental and facility services and others) increased 5% year over year to $1.3 billion. It represented approximately 50.8% of net sales. Gross profit increased 11.6% to $1.2 billion. The gross margin was 49.2% compared with 47.7% in the year-ago period. Our estimate for the gross margin was pegged at 48.6%.
Selling and administrative expenses totaled $667.9 million, reflecting an 8.1% increase from the year-ago figure. It represented 27% of net sales. The operating margin was 22.2% compared with 20.6% in the year-ago quarter. Interest expenses decreased 6.6% to $24.1 million.
Balance Sheet & Cash Flow
Exiting fiscal 2024, Cintas had cash and cash equivalents of $342 million compared with $124.1 million at the end of fiscal 2023. Long-term debt was about $2.03 billion compared with $2.49 billion at the end of the prior fiscal year.
In fiscal 2024, CTAS generated net cash of $2.1 billion from operating activities, up 32.8% from the year-ago period. Capital expenditures in the same period totaled $307.6 million, up 30.2% year over year. Free cash flow increased 31.9% year over year to $1.7 billion.
The company repurchased shares worth $700 million compared with $398.9 million in the year-ago period. Dividend payments totaled $530.9 million, up approximately 18% year over year.
FY25 Guidance
For fiscal 2025, Cintas expects revenues to be in the range of $10.16-$10.31 billion. The mid-point of the guided range — $10.235 billion — lies below the Zacks Consensus Estimate of $10.25 billion. Earnings per share are estimated to be in the range of $16.25-$16.75. The mid-point of the guided range — $16.5 — lies above the consensus estimate of $16.4 per share.
Cintas predicts interest expenses of approximately $106 million. This compares with interest expenses of $95 million recorded in fiscal 2024. The effective tax rate is expected to be 20.4%, which is the same compared with fiscal 2024.
Zacks Rank & Other Stocks to Consider
Cintas currently carries a Zacks Rank #2 (Buy). Some other top-ranked companies from the Industrial Products sector are discussed below:
Applied Industrial Technologies, Inc. (AIT - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 8.2%.
The Zacks Consensus Estimate for AIT’s fiscal 2024 (ended June 2024) earnings has remained steady in the past 60 days. The stock has risen 20.9% in the past six months.
Brady Corporation (BRC - Free Report) currently carries a Zacks Rank of 2 and has a trailing four-quarter earnings surprise of 6.7%, on average.
The consensus estimate for BRC’s fiscal 2024 (ending July 2024) earnings has increased 3.3% in the past 60 days. Shares of Brady have gained 17.4% in the past six months.
Crane Company (CR - Free Report) presently carries a Zacks Rank of 2. CR delivered a trailing four-quarter earnings surprise of 15.2%, on average.
The Zacks Consensus Estimate for CR’s 2024 earnings has increased 0.8% in the past 60 days. Its shares have gained 31% in the past six months.
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Cintas (CTAS) Q4 Earnings & Revenues Beat Estimates, View Up
Cintas Corporation (CTAS - Free Report) reported fourth-quarter fiscal 2024 (ended May 31, 2024) earnings of $3.99 per share, which beat the Zacks Consensus Estimate of $3.80. The bottom line increased 19.8% year over year despite an increase in operating costs.
Total revenues of $2.47 billion marginally outperformed the consensus estimate of $2.46 billion. The top line rose 8.2% year over year, driven by higher segmental revenues. Organic sales were up 7.5% 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 77.3% of the reported quarter’s net sales) totaled $1.9 billion, up 7.8% year over year. Our estimate for segmental revenues was $1.9 billion.
Revenues from the First Aid and Safety Services segment (representing 11.3% of the reported quarter’s net sales) totaled $277.6 million, up 11.2% year over year. Our estimate for segmental revenues was $276 million.
Revenues from All Other business (representing 11.4% of the reported quarter’s net sales) totaled $282.1 million, up 10.2% year over year. Our estimate for segmental revenues was $281.5 million.
Cintas Corporation Price, Consensus and EPS Surprise
Cintas Corporation price-consensus-eps-surprise-chart | Cintas Corporation Quote
Margin Profile
Cintas’ cost of sales (comprising costs related to uniform rental and facility services and others) increased 5% year over year to $1.3 billion. It represented approximately 50.8% of net sales. Gross profit increased 11.6% to $1.2 billion. The gross margin was 49.2% compared with 47.7% in the year-ago period. Our estimate for the gross margin was pegged at 48.6%.
Selling and administrative expenses totaled $667.9 million, reflecting an 8.1% increase from the year-ago figure. It represented 27% of net sales. The operating margin was 22.2% compared with 20.6% in the year-ago quarter. Interest expenses decreased 6.6% to $24.1 million.
Balance Sheet & Cash Flow
Exiting fiscal 2024, Cintas had cash and cash equivalents of $342 million compared with $124.1 million at the end of fiscal 2023. Long-term debt was about $2.03 billion compared with $2.49 billion at the end of the prior fiscal year.
In fiscal 2024, CTAS generated net cash of $2.1 billion from operating activities, up 32.8% from the year-ago period. Capital expenditures in the same period totaled $307.6 million, up 30.2% year over year. Free cash flow increased 31.9% year over year to $1.7 billion.
The company repurchased shares worth $700 million compared with $398.9 million in the year-ago period. Dividend payments totaled $530.9 million, up approximately 18% year over year.
FY25 Guidance
For fiscal 2025, Cintas expects revenues to be in the range of $10.16-$10.31 billion. The mid-point of the guided range — $10.235 billion — lies below the Zacks Consensus Estimate of $10.25 billion. Earnings per share are estimated to be in the range of $16.25-$16.75. The mid-point of the guided range — $16.5 — lies above the consensus estimate of $16.4 per share.
Cintas predicts interest expenses of approximately $106 million. This compares with interest expenses of $95 million recorded in fiscal 2024. The effective tax rate is expected to be 20.4%, which is the same compared with fiscal 2024.
Zacks Rank & Other Stocks to Consider
Cintas currently carries a Zacks Rank #2 (Buy). Some other top-ranked companies from the Industrial Products sector are discussed below:
Applied Industrial Technologies, Inc. (AIT - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 8.2%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for AIT’s fiscal 2024 (ended June 2024) earnings has remained steady in the past 60 days. The stock has risen 20.9% in the past six months.
Brady Corporation (BRC - Free Report) currently carries a Zacks Rank of 2 and has a trailing four-quarter earnings surprise of 6.7%, on average.
The consensus estimate for BRC’s fiscal 2024 (ending July 2024) earnings has increased 3.3% in the past 60 days. Shares of Brady have gained 17.4% in the past six months.
Crane Company (CR - Free Report) presently carries a Zacks Rank of 2. CR delivered a trailing four-quarter earnings surprise of 15.2%, on average.
The Zacks Consensus Estimate for CR’s 2024 earnings has increased 0.8% in the past 60 days. Its shares have gained 31% in the past six months.