The 10-second takeaway
For the quarter ended Feb. 29 (Q3), Cintas met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved, and GAAP earnings per share improved significantly.
Margins increased across the board.
Cintas tallied revenue of $1.01 billion. The 10 analysts polled by S&P Capital IQ predicted a top line of $1.01 billion on the same basis. GAAP reported sales were 7.9% higher than the prior-year quarter's $937.8 million.
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 $0.58. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.52 per share. GAAP EPS of $0.58 for Q3 were 41% higher than the prior-year quarter's $0.41 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 42.1%, 30 basis points better than the prior-year quarter. Operating margin was 13.6%, 200 basis points better than the prior-year quarter. Net margin was 7.5%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.07 billion. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $4.11 billion. The average EPS estimate is $2.22.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 359 members rating the stock outperform and 24 members rating it underperform. Among 151 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 148 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 $37.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Cintas. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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