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

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

Cintas Trading Down 0.1 %

NASDAQ CTAS opened at $207.01 on Friday. The company has a quick ratio of 1.52, a current ratio of 1.74 and a debt-to-equity ratio of 0.47. Cintas has a twelve month low of $118.68 and a twelve month high of $211.57. The company has a market cap of $21.00 billion, a price-to-earnings ratio of 14.30, a price-to-earnings-growth ratio of 4.09 and a beta of 1.32. The business’s fifty day moving average is $208.28 and its 200 day moving average is $183.50.

Cintas Cuts Dividend

The company also recently disclosed 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 dividend yield of 0.75%. The ex-dividend date was Thursday, August 15th. Cintas’s dividend payout ratio (DPR) is 10.77%.

Cintas announced that its board has authorized a stock buyback plan on Tuesday, July 23rd that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the business services provider to reacquire up to 1.3% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s leadership believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the company. StockNews.com upgraded Cintas from a “hold” rating to a “buy” rating in a research note on Friday, June 14th. Morgan Stanley increased their target price on Cintas from $170.00 to $185.00 and gave the stock an “equal weight” rating in a research note on Thursday. Wells Fargo & Company increased their target price on Cintas from $184.00 to $191.00 and gave the stock an “underweight” rating in a research note on Thursday. Redburn Atlantic initiated coverage on Cintas in a research note on Friday, August 9th. They set a “neutral” rating and a $167.50 price objective on the stock. Finally, Royal Bank of Canada raised their price objective on Cintas from $181.00 to $215.00 and gave the stock a “sector perform” rating in a research note on Thursday. Two research analysts have rated the stock with a sell rating, nine have given a hold rating and seven have issued a buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $197.30.

Insider Activity at Cintas

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 directly owns 125,808 shares of the company’s stock, valued at approximately $24,083,425.44. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 15.10% of the stock is currently owned by company insiders.

About Cintas

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.