The 10-second takeaway
For the quarter ended Nov. 30 (Q2), Cintas beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved, and earnings per share increased significantly.
Margins expanded across the board.
Cintas tallied revenue of $1.0 billion. The nine analysts polled by S&P Capital IQ expected a top line of $1.0 billion. Sales were 8.8% higher than the prior-year quarter's $937 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.57. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.48 per share. GAAP EPS of $0.57 for Q2 were 50% higher than the prior-year quarter's $0.38 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 42.2%, 50 basis points better than the prior-year quarter. Operating margin was 13%, 210 basis points better than the prior-year quarter. Net margin was 7.3%, 130 basis points better than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $1.0 billion. On the bottom line, the average EPS estimate is $0.52 (There are 10 revenue estimates and seven EPS estimates.)
For the full year ending 2012, the average estimate for revenue is $4.1 billion. The average EPS estimate is $2.19. (There are 11 revenue estimates and seven EPS estimates.)
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 354 members out of 376 rating the stock outperform, and 22 members rating it underperform. Among 156 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 154 give Cintas a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cintas is outperform, with an average price target of $32.33.
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