Cintas (NASDAQ:CTAS) Posts Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Cintas (NASDAQ:CTAS) issued its quarterly earnings data on Wednesday. The business services provider reported $1.10 EPS for the quarter, topping the consensus estimate of $1.00 by $0.10, Briefing.com reports. Cintas had a net margin of 16.38% and a return on equity of 37.82%. The firm had revenue of $2.50 billion for the quarter, compared to analyst estimates of $2.49 billion. During the same period in the prior year, the business posted $3.70 EPS. The business’s revenue for the quarter was up 6.8% compared to the same quarter last year. Cintas updated its FY25 guidance to $4.17-4.25 EPS and its FY 2025 guidance to 4.170-4.250 EPS.

Cintas Price Performance

CTAS stock traded down $4.66 during trading on Friday, reaching $202.35. 2,332,093 shares of the company were exchanged, compared to its average volume of 1,492,193. The company has a market cap of $20.53 billion, a P/E ratio of 14.09, a PEG ratio of 4.09 and a beta of 1.32. Cintas has a 52-week low of $119.69 and a 52-week high of $211.57. The stock’s 50 day moving average price is $208.63 and its 200 day moving average price is $183.66. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.52 and a current ratio of 1.74.

Cintas Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 3rd. Investors of record on Thursday, August 15th were issued a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a yield of 0.77%. The ex-dividend date was Thursday, August 15th. Cintas’s dividend payout ratio is currently 10.77%.

Wall Street Analyst Weigh In

CTAS has been the topic of several recent analyst reports. Stifel Nicolaus upped their price objective on shares of Cintas from $166.75 to $199.50 and gave the stock a “hold” rating in a report on Friday, July 19th. UBS Group increased their target price on shares of Cintas from $219.00 to $240.00 and gave the stock a “buy” rating in a report on Thursday. Baird R W lowered shares of Cintas from a “strong-buy” rating to a “hold” rating in a report on Friday, July 19th. Jefferies Financial Group reduced their target price on shares of Cintas from $730.00 to $200.00 and set a “hold” rating on the stock in a report on Thursday. Finally, Royal Bank of Canada increased their target price on shares of Cintas from $181.00 to $215.00 and gave the stock a “sector perform” rating in a report on Thursday. Two analysts have rated the stock with a sell rating, nine have given a hold rating and seven have given a buy rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $199.63.

Insider Buying and Selling

In other Cintas news, Director Gerald S. Adolph sold 4,400 shares of Cintas stock in a transaction dated Wednesday, July 24th. The shares were sold at an average price of $191.43, for a total transaction of $842,292.00. Following the completion of the transaction, the director now owns 125,808 shares in the company, valued at $24,083,425.44. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 15.10% of the stock is owned by insiders.

Cintas announced that its board has approved a share repurchase program on Tuesday, July 23rd that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the business services provider to reacquire up to 1.3% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s management believes its shares are undervalued.

About Cintas

Cintas Corporation engages in the provision of corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments. The company rents and services uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, as well as sells uniforms.