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

Cintas (NASDAQ:CTAS) issued its quarterly earnings data on Wednesday. The business services provider reported $1.10 earnings per share for the quarter, beating the consensus estimate of $1.00 by $0.10, Briefing.com reports. The firm had revenue of $2.50 billion for the quarter, compared to the consensus estimate of $2.49 billion. Cintas had a net margin of 16.38% and a return on equity of 37.82%. Cintas’s quarterly revenue was up 6.8% compared to the same quarter last year. During the same period last year, the firm posted $3.70 EPS. Cintas updated its FY25 guidance to $4.17-4.25 EPS and its FY 2025 guidance to 4.170-4.250 EPS.

Cintas Stock Performance

Shares of CTAS stock opened at $202.35 on Friday. The company has a market capitalization of $20.53 billion, a price-to-earnings ratio of 13.97, a P/E/G ratio of 4.09 and a beta of 1.32. Cintas has a 1-year low of $119.69 and a 1-year high of $211.57. The company has a current ratio of 1.74, a quick ratio of 1.52 and a debt-to-equity ratio of 0.47. The stock’s fifty day simple moving average is $208.88 and its 200-day simple moving average is $183.98.

Cintas Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 3rd. Investors of record on Thursday, August 15th were paid a $0.39 dividend. The ex-dividend date was Thursday, August 15th. This represents a $1.56 dividend on an annualized basis and a yield of 0.77%. Cintas’s dividend payout ratio is currently 10.77%.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the company. Jefferies Financial Group cut their price target on Cintas from $730.00 to $200.00 and set a “hold” rating on the stock in a report on Thursday. Royal Bank of Canada boosted their price target on Cintas from $181.00 to $215.00 and gave the stock a “sector perform” rating in a research report on Thursday. Morgan Stanley increased their price target on Cintas from $170.00 to $185.00 and gave the stock an “equal weight” rating in a research note on Thursday. The Goldman Sachs Group upped their price objective on shares of Cintas from $212.00 to $236.00 and gave the stock a “buy” rating in a report on Thursday. Finally, Wells Fargo & Company increased their target price on shares of Cintas from $184.00 to $191.00 and gave the company an “underweight” rating in a research report on Thursday. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating and seven have given a buy rating to the stock. According to data from MarketBeat.com, Cintas has a consensus rating of “Hold” and a consensus price target of $199.63.

Insider Buying and Selling

In other Cintas news, Director Gerald S. Adolph sold 4,400 shares of Cintas stock in a transaction dated Wednesday, July 24th. The stock was sold at an average price of $191.43, for a total transaction of $842,292.00. Following the transaction, 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 document filed with the SEC, which is available at this hyperlink. Company insiders own 15.10% of the company’s stock.

Cintas declared that its board has authorized a stock repurchase program on Tuesday, July 23rd that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the business services provider to purchase up to 1.3% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors 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.