Cintas (CTAS) Whacked as Q2 Results Disappoint

Shares of Cintas (Nasdaq: CTAS) have fallen more than 7% in this evening's after-hours session on the back of soft Q2 results. The stock most recently traded at $27.42.

The so-called "Uniform People", Cintas was harmed by still-astonishing levels of unemployment last quarter. The company reported non-GAAP EPS of of $0.39, 4 cents lower than the Street had been expecting, and down (on a GAAP basis) 21% from the same quarter last year. Sales, meanwhile, also came in below the analyst consensus at $884.5 million. Sales fell more than 10% from the $985.18 million reported in Q208.

Cintas CEO, Scott Farmer, addressing the labor market concerns: "According to the U.S. Department of Labor, the U.S. economy has lost jobs for 23 consecutive months, with 7.2 million jobs lost during that time frame. These job losses directly affect our business as many of our products and services are dependant on customer employee levels. While job losses have moderated recently, 1.2 million jobs were lost during the last six months and we do not know when positive job growth will return. We will continue to focus on taking care of our customers and actively managing our cost structure in this difficult environment."

UPDATE: Click here to see some highlights from Cintas' Q2 conference call.

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