Cintas, the Cincinnati-based provider of uniform-rental and other services, has announced increased revenue and earnings for the fiscal first quarter. Here are the key details:
Cintas reported a profit of $385.1 million for the quarter, a significant increase from $351.7 million in the same period last year.
Impressive Earnings Growth
Quarterly earnings reached $3.70 a share, up from $3.39 a share in the prior year. This figure also surpassed analyst forecasts, which predicted earnings of $3.67 a share according to FactSet.
Consistent Sales Growth
The company recorded an 8.1% rise in revenue, totaling $2.34 billion for the quarter. This figure aligns with the consensus estimate of analysts polled by FactSet.
Key Factors to Note
Cintas experienced improved gross margin as energy costs, including gasoline, natural gas, and electricity, decreased during the quarter.
Strong Volume Growth
Although specific metrics were not provided, Cintas CEO Todd Schneider mentioned that the company witnessed robust volume growth in the fiscal first quarter due to strong execution across its operating segments.
Cintas has revised its sales outlook for the fiscal year. The company now anticipates revenue between $9.4 billion and $9.52 billion, surpassing its previous guidance of $9.35 billion to $9.5 billion.
Enhanced Earnings Projection
Cintas also upgraded its earnings projection for the fiscal year. The company now expects to achieve earnings of $14 to $14.45 a share, up from its previous forecast of $13.85 to $14.35 a share.
For more information, contact Dean Seal.