Cintas Corp. (CTAS) Tops Q2 EPS by 8c, Raises FY15 EPS Guidance
Cintas Corporation (NASDAQ: CTAS) reported Q2 EPS of $0.86, $0.08 better than the analyst estimate of $0.78. Revenue for the quarter came in at $1.12 billion versus the consensus estimate of $1.11 billion.
Cintas Corporation sees FY2015 EPS of $3.20 - $3.25, versus prior guidance of $3.05 - $3.14 and the consensus of $3.15. Cintas Corporation sees FY2015 revenue of $4.45 - $4.50 billion, versus the consensus of $4.46 billion.
FISCAL YEAR 2015 GUIDANCE
Mr. Farmer concluded, “We view the state of the U.S. economy as fairly fragile given numerous factors globally and within the U.S., and are hesitant to turn too optimistic. However, we have been pleased with the recent U.S. economic performance and look forward to this current state continuing in the second half of our fiscal year. Based on this view of the U.S. economy and our second quarter results, we are updating our fiscal 2015 guidance. We now expect fiscal 2015 revenue to be in the range of $4.45 billion to $4.50 billion, and fiscal 2015 EPS to be in the range of $3.49 to $3.54. This guidance continues to assume no EPS contribution from the partnership with Shred-it International Inc. due to the expectation of first year integration and transition expenses.”
As mentioned earlier in this press release, subsequent to the closing of the Shred-it Transaction on April 30, 2014, we no longer include Document Shredding revenue in our reported revenue. The table below shows a comparison of fiscal 2014 revenue to our updated 2015 revenue guidance.
| Fiscal 2015 | Fiscal 2015 | |||||||||||||||
Updated Revenue Guidance | Low End | Growth vs. | High End | Growth vs. | ||||||||||||
(dollar amounts in millions) | Fiscal 2014 | of Range | Fiscal 2014 | of Range | Fiscal 2014 | |||||||||||
| Revenue, excluding Document Shredding | $ | 4,193.9 | $ | 4,450.0 | 6.1 | % | $ | 4,500.0 | 7.3 | % | ||||||
| Document Shredding Revenue | 275.7 | |||||||||||||||
Total Cintas Revenue | $ | 4,469.6 | ||||||||||||||
The table below shows a comparison of fiscal 2014 EPS to our updated 2015 EPS guidance.
| Fiscal 2015 | Fiscal 2015 | |||||||||||||||
| Low End | Growth vs. | High End | Growth vs. | |||||||||||||
Updated EPS Guidance | Fiscal 2014 | of Range | Fiscal 2014 | of Range | Fiscal 2014 | |||||||||||
| EPS, excluding Special Items | $ | 2.75 | $ | 3.20 | 16.4 | % | $ | 3.25 | 18.2 | % | ||||||
| Impact of Shredding business | 0.04 | - | - | |||||||||||||
| Impact of sale of stock in equity investment | - | 0.11 | 0.11 | |||||||||||||
| Impact of Shred-it Transaction | 0.26 | 0.04 | 0.04 | |||||||||||||
| Impact of discontinued operations | - | 0.14 | 0.14 | |||||||||||||
Total Reported Cintas EPS | $ | 3.05 | $ | 3.49 | 14.4 | % | $ | 3.54 | 16.1 | % | ||||||
For earnings history and earnings-related data on Cintas Corporation (CTAS) click here.