The 10-second takeaway
For the quarter ended Nov. 30 (Q2), Cintas met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded.
Gross margins shrank, operating margins grew, net margins expanded.
Cintas reported revenue of $1.06 billion. The 10 analysts polled by S&P Capital IQ predicted a top line of $1.06 billion on the same basis. GAAP reported sales were 4.0% 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 came in at $0.63. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.62 per share. GAAP EPS of $0.63 for Q2 were 11% higher than the prior-year quarter's $0.57 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 40.7%, 150 basis points worse than the prior-year quarter. Operating margin was 13.1%, 10 basis points better than the prior-year quarter. Net margin was 7.4%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.05 billion. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $4.27 billion. The average EPS estimate is $2.53.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 366 members out of 389 rating the stock outperform, and 23 members rating it underperform. Among 160 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 156 give Cintas a green thumbs-up, and four 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 $42.29.
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