Cintas
The 10-second takeaway
For the quarter ended Aug. 31 (Q1), Cintas met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins grew, net margins grew.
Revenue details
Cintas booked revenue of $1.05 billion. The 10 analysts polled by S&P Capital IQ predicted sales of $1.06 billion on the same basis. GAAP reported sales were 3.4% higher than the prior-year quarter's $1.02 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.60. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.58 per share. GAAP EPS of $0.60 for Q1 were 15% higher than the prior-year quarter's $0.52 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 42.4%, 80 basis points worse than the prior-year quarter. Operating margin was 13.2%, 60 basis points better than the prior-year quarter. Net margin was 7.3%, 60 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $1.06 billion. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $4.28 billion. The average EPS estimate is $2.55.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 360 members out of 382 rating the stock outperform, and 22 members rating it underperform. Among 148 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 145 give Cintas a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cintas is hold, with an average price target of $40.75.
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