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) to Post Q1 Earnings: What's in the Offing?
Read MoreHide Full Article
Cintas Corporation (CTAS - Free Report) is scheduled to release first-quarter fiscal 2020 (ended August 2019) results on Sep 24, after the market closes.
The company delivered better-than-expected results in the last four quarters, the average earnings surprise being 6.27%. In the last reported quarter, its earnings of $2.07 surpassed the Zacks Consensus Estimate of $1.94 by 6.70%.
In the past three months, shares of the company gained 8.2% compared with the industry’s growth of 7.9%.
Let us see how things are shaping up for Cintas this quarter.
Factors to Affect Q1 Results
The company’s results can be influenced by several company-specific matters. Of all, implementation of its new enterprise resource planning system, namely SAP, will be a boon. In fiscal 2020 (ending May 2020), the company will convert 35% of its operations in SAP, while related expenses will be incurred during the year.
In addition, Cintas’ innovative products, efficient services and presence of customers in various markets give it a competitive edge over other industry players. A dedicated management team and acquired assets of G&K Services are added boons. Also, need for companies to provide a safe and clean working requirement to its employee is creating demand for players like Cintas.
The company has not provided any quarter-specific projections but a look at its annual guidance can be helpful. For fiscal 2020, it anticipates revenues of $7.24-$7.31 billion (suggesting growth of 5-6.1% from the year-ago reported figure) and earnings per share of $8.30-$8.45.
On the flip side, the company noted that one less working day in fiscal 2020 will hurt revenues by 0.4%, operating margin by 12.5 basis points (bps), earnings by 6 cents per share and earnings growth by 90 bps. Working days in the fiscal first quarter will be one less than the year-ago quarter. Also, high tax rate of 21% in the fiscal year (versus 19.9% in fiscal 2019) will adversely impact earnings by 14 cents and earnings growth by 180 bps.
On a segmental basis, the Zacks Consensus Estimate for Uniform Rental and Facility Services’ revenues is pegged at $1,451 million for the fiscal first quarter, indicating 5.5% growth from the year-ago reported figure. First Aid and Safety Services’ revenues estimates are pegged at $166 million, suggesting 8.5% growth from the year-ago quarter, and All Other’s revenues are pinned at $177 million, indicating a 4.1% improvement year over year.
Earnings Whispers
Our proven model provides some idea about the stocks that are about to release their earnings results. Per the model, a stock needs a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The case with Cintas has been provided below.
Earnings ESP: The company has an Earnings ESP of +0.00%, with both the Zacks Consensus Estimate and the Most Accurate Estimate pegged at $2.14.
Cintas Corporation Price, Consensus and EPS Surprise
Zacks Rank: Cintas currently carries a Zacks Rank #3.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks to Consider
Here are some companies in the Zacks Industrial Products sector that you may want to consider as these have the right combination of elements, per our model.
Colfax Corporation has an Earnings ESP of +2.13% and a Zacks Rank #3 at present.
Brady Corporation (BRC - Free Report) currently has an Earnings ESP of +1.59% and a Zacks Rank #2.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.6% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Cintas (CTAS) to Post Q1 Earnings: What's in the Offing?
Cintas Corporation (CTAS - Free Report) is scheduled to release first-quarter fiscal 2020 (ended August 2019) results on Sep 24, after the market closes.
The company delivered better-than-expected results in the last four quarters, the average earnings surprise being 6.27%. In the last reported quarter, its earnings of $2.07 surpassed the Zacks Consensus Estimate of $1.94 by 6.70%.
In the past three months, shares of the company gained 8.2% compared with the industry’s growth of 7.9%.
Let us see how things are shaping up for Cintas this quarter.
Factors to Affect Q1 Results
The company’s results can be influenced by several company-specific matters. Of all, implementation of its new enterprise resource planning system, namely SAP, will be a boon. In fiscal 2020 (ending May 2020), the company will convert 35% of its operations in SAP, while related expenses will be incurred during the year.
In addition, Cintas’ innovative products, efficient services and presence of customers in various markets give it a competitive edge over other industry players. A dedicated management team and acquired assets of G&K Services are added boons. Also, need for companies to provide a safe and clean working requirement to its employee is creating demand for players like Cintas.
The company has not provided any quarter-specific projections but a look at its annual guidance can be helpful. For fiscal 2020, it anticipates revenues of $7.24-$7.31 billion (suggesting growth of 5-6.1% from the year-ago reported figure) and earnings per share of $8.30-$8.45.
On the flip side, the company noted that one less working day in fiscal 2020 will hurt revenues by 0.4%, operating margin by 12.5 basis points (bps), earnings by 6 cents per share and earnings growth by 90 bps. Working days in the fiscal first quarter will be one less than the year-ago quarter. Also, high tax rate of 21% in the fiscal year (versus 19.9% in fiscal 2019) will adversely impact earnings by 14 cents and earnings growth by 180 bps.
On a segmental basis, the Zacks Consensus Estimate for Uniform Rental and Facility Services’ revenues is pegged at $1,451 million for the fiscal first quarter, indicating 5.5% growth from the year-ago reported figure. First Aid and Safety Services’ revenues estimates are pegged at $166 million, suggesting 8.5% growth from the year-ago quarter, and All Other’s revenues are pinned at $177 million, indicating a 4.1% improvement year over year.
Earnings Whispers
Our proven model provides some idea about the stocks that are about to release their earnings results. Per the model, a stock needs a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The case with Cintas has been provided below.
Earnings ESP: The company has an Earnings ESP of +0.00%, with both the Zacks Consensus Estimate and the Most Accurate Estimate pegged at $2.14.
Cintas Corporation Price, Consensus and EPS Surprise
Cintas Corporation price-consensus-eps-surprise-chart | Cintas Corporation Quote
Zacks Rank: Cintas currently carries a Zacks Rank #3.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks to Consider
Here are some companies in the Zacks Industrial Products sector that you may want to consider as these have the right combination of elements, per our model.
John Bean Technologies Corporation (JBT - Free Report) presently has an Earnings ESP of +1.10% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Colfax Corporation has an Earnings ESP of +2.13% and a Zacks Rank #3 at present.
Brady Corporation (BRC - Free Report) currently has an Earnings ESP of +1.59% and a Zacks Rank #2.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.6% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>