The 10-second takeaway
For the quarter ended Feb. 28 (Q3), Cintas beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew.
Margins dropped across the board.
Cintas chalked up revenue of $1.08 billion. The 10 analysts polled by S&P Capital IQ expected revenue of $1.06 billion on the same basis. GAAP reported sales were 6.3% higher than the prior-year quarter's $1.01 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 $0.60. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.62 per share. GAAP EPS of $0.60 for Q3 were 3.4% higher than the prior-year quarter's $0.58 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 41.1%, 100 basis points worse than the prior-year quarter. Operating margin was 12.4%, 120 basis points worse than the prior-year quarter. Net margin was 6.9%, 60 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.13 billion. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $4.31 billion. The average EPS estimate is $2.52.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 365 members out of 388 rating the stock outperform, and 23 members rating it underperform. Among 167 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 165 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 hold, with an average price target of $42.00.
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