Cintas (NASDAQ:CTAS) Announces Earnings Results

Cintas (NASDAQ:CTAS) issued its earnings results on Wednesday. The business services provider reported $1.10 EPS for the quarter, beating the consensus estimate of $1.00 by $0.10, Briefing.com reports. Cintas had a net margin of 16.38% and a return on equity of 37.82%. The company had revenue of $2.50 billion during the quarter, compared to analysts’ expectations of $2.49 billion. During the same quarter in the previous year, the company posted $3.70 EPS. The business’s revenue for the quarter was up 6.8% compared to the same quarter last year. 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

NASDAQ:CTAS opened at $207.01 on Friday. The stock’s 50-day simple moving average is $208.28 and its 200 day simple moving average is $183.50. Cintas has a 52-week low of $118.68 and a 52-week high of $211.57. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.52 and a current ratio of 1.74. The company has a market cap of $21.00 billion, a P/E ratio of 14.30, a P/E/G ratio of 4.09 and a beta of 1.32.

Cintas Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 3rd. Investors of record on Thursday, August 15th were issued a dividend of $0.39 per share. This represents a $1.56 annualized dividend and a yield of 0.75%. The ex-dividend date was Thursday, August 15th. Cintas’s payout ratio is 10.77%.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on CTAS shares. Barclays cut their target price on Cintas from $850.00 to $210.00 and set an “overweight” rating on the stock in a research note on Friday, September 13th. Robert W. Baird increased their price target on shares of Cintas from $194.00 to $209.00 and gave the company a “neutral” rating in a research report on Thursday. Stifel Nicolaus lifted their price objective on shares of Cintas from $166.75 to $199.50 and gave the stock a “hold” rating in a research note on Friday, July 19th. The Goldman Sachs Group upped their target price on shares of Cintas from $212.00 to $236.00 and gave the company a “buy” rating in a research note on Thursday. Finally, Jefferies Financial Group cut their target price on shares of Cintas from $730.00 to $200.00 and set a “hold” rating on the stock in a report on Thursday. Two analysts have rated the stock with a sell rating, nine have assigned a hold rating and seven have given a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $197.30.

Cintas announced that its board has initiated a share repurchase plan on Tuesday, July 23rd that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the business services provider to buy up to 1.3% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its shares are undervalued.

Insider Buying and Selling at Cintas

In other Cintas news, Director Gerald S. Adolph sold 4,400 shares of the company’s stock in a transaction on Wednesday, July 24th. The shares were sold at an average price of $191.43, for a total transaction of $842,292.00. Following the sale, the director now directly owns 125,808 shares of the company’s stock, valued at $24,083,425.44. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 15.10% of the company’s stock.

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.