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

Cintas (NASDAQ:CTAS) released its quarterly earnings results on Wednesday. The business services provider reported $1.10 earnings per share for the quarter, beating analysts’ consensus estimates of $1.00 by $0.10, Briefing.com reports. The business 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 revenue for the quarter was up 6.8% on a year-over-year basis. During the same quarter last year, the firm earned $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 Price Performance

Shares of CTAS stock opened at $202.35 on Friday. The stock’s fifty day simple moving average is $208.88 and its 200 day simple moving average is $183.98. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.74 and a quick ratio of 1.52. Cintas has a one year low of $119.69 and a one year high of $211.57. The firm has a market cap 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 Cuts Dividend

The company also recently announced 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 dividend yield of 0.77%. Cintas’s payout ratio is 10.77%.

Insider Buying and Selling

In other Cintas news, Director Gerald S. Adolph sold 4,400 shares of the business’s stock in a transaction dated Wednesday, July 24th. The shares were sold at an average price of $191.43, for a total value of $842,292.00. Following the transaction, the director now directly owns 125,808 shares in the company, valued at $24,083,425.44. The transaction was disclosed in a document filed with the SEC, which is available through this link. 15.10% of the stock is currently owned by corporate insiders.

Cintas declared that its Board of Directors has approved a share repurchase program on Tuesday, July 23rd that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the business services provider to buy up to 1.3% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Wall Street Analysts Forecast Growth

CTAS has been the topic of a number of recent analyst reports. The Goldman Sachs Group raised their price objective on Cintas from $212.00 to $236.00 and gave the company a “buy” rating in a research note on Thursday. StockNews.com raised shares of Cintas from a “hold” rating to a “buy” rating in a research report on Friday, June 14th. Barclays upped their price objective on shares of Cintas from $210.00 to $245.00 and gave the stock an “overweight” rating in a report on Friday. Royal Bank of Canada lifted their target price on shares of Cintas from $181.00 to $215.00 and gave the stock a “sector perform” rating in a report on Thursday. Finally, Robert W. Baird upped their price target on shares of Cintas from $194.00 to $209.00 and gave the company a “neutral” rating in a report on Thursday. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating and seven have issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $199.63.

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.