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

Cintas (NASDAQ:CTAS) issued its quarterly earnings results on Wednesday. The business services provider reported $1.10 earnings per share for the quarter, beating 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 business had revenue of $2.50 billion for the quarter, compared to the consensus estimate of $2.49 billion. During the same quarter in the previous year, the firm earned $3.70 earnings per share. The company’s revenue for the quarter was up 6.8% on a year-over-year basis. Cintas updated its FY25 guidance to $4.17-4.25 EPS and its FY 2025 guidance to 4.170-4.250 EPS.

Cintas Stock Down 2.3 %

Shares of CTAS opened at $202.35 on Friday. The firm has a fifty day moving average price of $208.63 and a 200-day moving average price of $183.66. The company has a current ratio of 1.74, a quick ratio of 1.52 and a debt-to-equity ratio of 0.47. The firm has a market capitalization of $20.53 billion, a P/E ratio of 13.97, a P/E/G ratio of 4.09 and a beta of 1.32. Cintas has a 12-month low of $119.69 and a 12-month high of $211.57.

Cintas Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 3rd. Shareholders of record on Thursday, August 15th were given a $0.39 dividend. This represents a $1.56 annualized dividend and a yield of 0.77%. The ex-dividend date was Thursday, August 15th. Cintas’s dividend payout ratio (DPR) is presently 10.77%.

Wall Street Analyst Weigh In

A number of research firms recently commented on CTAS. StockNews.com raised Cintas from a “hold” rating to a “buy” rating in a report on Friday, June 14th. UBS Group lifted their price objective on Cintas from $219.00 to $240.00 and gave the stock a “buy” rating in a research note on Thursday. Truist Financial increased their target price on Cintas from $212.50 to $225.00 and gave the company a “buy” rating in a research report on Tuesday, September 17th. Stifel Nicolaus upped their price target on shares of Cintas from $166.75 to $199.50 and gave the company a “hold” rating in a research note on Friday, July 19th. Finally, Royal Bank of Canada boosted 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 issued a hold rating and seven have issued a buy rating to the company’s stock. According to data from MarketBeat.com, Cintas presently has a consensus rating of “Hold” and a consensus price target of $199.63.

Cintas announced that its board has authorized a stock repurchase program on Tuesday, July 23rd that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the business services provider to purchase up to 1.3% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its shares are undervalued.

Insider Buying and Selling

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

Cintas Company Profile

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.