Cintas (CTAS, $435.00) beats fiscal Q2 expectations
Cintas posted its fiscal second quarter results that surpassed Wall Street expectations.
The uniform rental company’s diluted earnings per share came in at $2.76, higher than the Street expectations of $2.65 per share.
Sales rose +9.4% from the year-ago quarter to $1.92 billion vs. $1.76 billion expected by analysts polled by FactSet.
CEO Todd Schneider said that EPS grew significantly notwithstanding U.S. inflation’s recent 39-year high and the company’s investment in labor to support revenue growth.
Looking ahead, Cintas projects fiscal 2022 diluted earnings per share in the range of $10.70 to $10.95, up from a prior forecast of $10.60 to $10.90. Analysts expect earnings per share of $10.90.
Cintas expects revenue to range between $7.63 billion and $7.7 billion, higher than its previous outlook of $7.58 billion to $7.67 billion. Analysts expect revenue of $7.65 billion.
The company mentioned that the guidance assumes “an uneven economic recovery" from Covid-19, and that it did not incorporate any costs related to Covid-19 government mandates.
CTAS's Stochastic Oscillator remains in oversold zone for 1 day
Be on the lookout for a price bounce soon.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CTAS advanced for three days, in of 372 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 345 cases where CTAS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 25, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on CTAS as a result. In of 93 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for CTAS turned negative on October 23, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CTAS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
CTAS broke above its upper Bollinger Band on October 16, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. CTAS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (17.271) is normal, around the industry mean (27.010). P/E Ratio (49.264) is within average values for comparable stocks, (88.031). CTAS's Projected Growth (PEG Ratio) (3.860) is very high in comparison to the industry average of (1.729). Dividend Yield (0.008) settles around the average of (0.038) among similar stocks. P/S Ratio (7.645) is also within normal values, averaging (11.835).
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General Information
a provider of rental and servicing of uniforms and other garments
Industry MiscellaneousCommercialServices