Cintas (NASDAQ:CTAS) Releases Earnings Results, Beats Estimates By $0.10 EPS

Cintas (NASDAQ:CTAS) issued its earnings results on Wednesday. The business services provider reported $1.10 earnings per share for the quarter, topping analysts’ consensus estimates of $1.00 by $0.10, Briefing.com reports. Cintas had a net margin of 16.38% and a return on equity of 37.82%. The firm had revenue of $2.50 billion during the quarter, compared to analyst estimates of $2.49 billion. During the same quarter in the prior year, the business earned $3.70 earnings per share. Cintas’s revenue for the quarter was up 6.8% on a year-over-year basis. Cintas updated its FY25 guidance to $4.17-4.25 EPS and its FY 2025 guidance to 4.170-4.250 EPS.

Cintas Trading Up 1.2 %

NASDAQ:CTAS opened at $207.21 on Thursday. The firm has a 50-day simple moving average of $207.74 and a 200-day simple moving average of $183.33. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.52 and a current ratio of 1.74. Cintas has a one year low of $118.68 and a one year high of $209.59. The firm has a market cap of $21.02 billion, a P/E ratio of 14.31, a P/E/G ratio of 4.09 and a beta of 1.32.

Cintas Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 3rd. Stockholders of record on Thursday, August 15th were issued a $0.39 dividend. The ex-dividend date was Thursday, August 15th. This represents a $1.56 annualized dividend and a dividend yield of 0.75%. Cintas’s dividend payout ratio is currently 10.77%.

Insiders Place Their Bets

In other Cintas news, Director Gerald S. Adolph sold 4,400 shares of the business’s stock in a transaction that occurred on Wednesday, July 24th. The shares were sold at an average price of $191.43, for a total transaction of $842,292.00. Following the sale, the director now owns 125,808 shares of the company’s stock, valued at approximately $24,083,425.44. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 15.10% of the stock is owned by insiders.

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. Wells Fargo & Company upgraded shares of Cintas to a “strong sell” rating in a research report on Tuesday, August 13th. Redburn Atlantic assumed coverage on shares of Cintas in a research report on Friday, August 9th. They set a “neutral” rating and a $167.50 price objective for the company. Barclays lowered their price objective on shares of Cintas from $850.00 to $210.00 and set an “overweight” rating for the company in a research report on Friday, September 13th. Baird R W lowered shares of Cintas from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 19th. Finally, Truist Financial increased their target price on shares of Cintas from $212.50 to $225.00 and gave the company a “buy” rating in a research note on Tuesday, September 17th. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating and seven have issued a buy rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $186.30.

Cintas announced that its board has approved a stock repurchase plan on Tuesday, July 23rd that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the business services provider to buy up to 1.3% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

Cintas Company Profile

Cintas Corporation engages in the provision of corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments. The company rents and services uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, as well as sells uniforms.