Oppenheimer Reiterates Outperform on Cintas Corp. (CTAS) Following 1Q Report

September 28, 2016 10:05 AM EDT
Get Alerts CTAS Hot Sheet
Price: $118.05 +1.20%

Rating Summary:
    10 Buy, 9 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 28 | Down: 20 | New: 17
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Oppenheimer reiterated an Outperform rating on Cintas Corp. (NASDAQ: CTAS) following the company's 1Q earnings report. CTAS reported adjusted EPS of $1.26, ahead of the consensus estimates of $1.08. Management updated FY17 EPS guidance to $4.55-4.63 from $4.35-4.45 vs. the consensus of $4.42.

Analyst Scott Schneeberger commented, "F1Q17 adj'd EPS of $1.26 exceeded our estimate/consensus of $1.05/$1.08, respectively, even after a $0.14 accounting change benefit. Revenue of $1.294B (+7.9% y/y, +5.7% y/y organically excluding acquisition impacts/forex) exceeded our estimate/consensus of $1.273B/$1.279B. CTAS updated FY17 revenue/adj'd EPS guidance to $5.160-5.225B (+5.2% to +6.5% y/y; from $5.150-5.225B)/$4.55-4.63 (+11% to +13% y/y; from $4.35-4.45). FY17 guidance assumes consistent US economic conditions/no additional share repurchases/no (pending) G&K acquisition impact including transaction expenses. The ~$0.20 FY17 EPS guidance increase is comprised of a net $0.07 accounting change benefit/margin improvement including less SAP opex/fewer shares. CTAS's solid organic growth/near-peak margins are anticipated to persist in FY17. Despite executing proficiently on apparent momentum, at 22.9x/22.1x our FY18E standalone/CTAS+G&K pro forma EPS we're maintaining Perform."

For an analyst ratings summary and ratings history on Cintas click here. For more ratings news on Cintas click here.

Shares of Cintas closed at $113.43 yesterday.



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