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.
- Add Cintas to My Watchlist.