Cintas' (CTAS) raised forecast falls short of analyst consensus; Shares dip

Cintas (NASDAQ: CTAS) has increased its revenue forecast for the full year. Still, its shares fell about 1% in pre-market Tuesday.

The new revenue projection is in the range of $9.40 billion to $9.52 billion, up from the previous guidance of $9.35 billion to $9.50 billion. The consensus stood at $9.5 billion.

For the first fiscal quarter, Cintas reported earnings per share of $3.70, just ahead of the expected $3.66. The company generated revenue of $2.34 billion, representing an 8.1% year-on-year increase, which met the estimated revenue of $2.33 billion.

Uniform Rental and Facility Services revenue amounted to $1.83 billion, reflecting a 7.6% year-on-year increase, in line with the estimated revenue of $1.82 billion. First Aid and Safety Services revenue reached $260.7 million, marking an 11% year-on-year increase, compared to the estimated revenue of $257.6 million.

Todd M. Schneider, Cintas' President and Chief Executive Officer, stated, "We are pleased with our first quarter fiscal 2024 financial results. Our operating segments continue to execute at a high level, leading to robust volume growth and a record high operating margin of 21.4%.”

The gross margin was 48.7%, up from 47.5% year-on-year, and higher than the estimated margin of 47.9%.

By Senad Karaahmetovic

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