Cintas posted earnings of $2.81 per share for the quarter ending May 31 2022, topping the Zacks Consensus Estimate of $2.68. The figure is +13.8% higher vs. the year-ago quarter.
Revenues rose +13% from the year-ago quarter to $2,074.7 million, also exceeding the Zacks Consensus Estimate of $2,001 million. Organic revenue grew + 12.7% year over year.
The company’s revenues from the Uniform Rental and Facility Services segment (accounting for about 78.6% of the reported quarter’s net sales) were $1,630.21 million, up +11.1% from the year-ago quarter.
Revenues from the First Aid and Safety Services segment (~ 10.5% of the reported quarter’s net sales) came in at $218.22 million, growing +16.7% year over year.
Revenues from the All Other business (around 10.9% of the reported quarter’s net sales) were $226.25 million, rising +24.4% year over year.
Looking ahead, Cintas expects revenues of $8.47-$8.58 billion for fiscal 2023, compared to the Zacks Consensus Estimate of $8.32 billion. The company projects earnings per share of $11.90-$12.30 for the fiscal year, vs. the Zacks Consensus Estimate of $12.29.
The company is expecting adjusted operating income in the range of $1.68 billion-$1.73 billion in fiscal 2023, compared with $1.55 billion reported in fiscal 2022. Interest expense is predicted to be approximately $110 million for the fiscal year. The company is anticipating an effective tax rate of around 20%, higher than 17.9% in fiscal 2022. The estimated increase in tax rate is likely to have a adverse effect of approximately 32 cents on fiscal 2023 earnings.