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

Cintas (NASDAQ:CTAS) released its earnings results on Wednesday. The business services provider reported $1.10 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.00 by $0.10, Briefing.com reports. The firm had revenue of $2.50 billion during the quarter, compared to analysts’ expectations of $2.49 billion. Cintas had a return on equity of 37.82% and a net margin of 16.38%. The company’s revenue was up 6.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $3.70 EPS. Cintas updated its FY25 guidance to $4.17-4.25 EPS and its FY 2025 guidance to 4.170-4.250 EPS.

Cintas Stock Performance

Shares of NASDAQ:CTAS traded down $4.66 during trading on Friday, reaching $202.35. 2,332,229 shares of the stock were exchanged, compared to its average volume of 1,492,194. The firm has a market cap of $20.53 billion, a PE ratio of 14.09, a PEG ratio of 4.09 and a beta of 1.32. The company has a current ratio of 1.74, a quick ratio of 1.52 and a debt-to-equity ratio of 0.47. Cintas has a 12 month low of $119.69 and a 12 month high of $211.57. The stock has a 50-day moving average price of $208.63 and a 200-day moving average price of $183.66.

Cintas Cuts Dividend

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

Analysts Set New Price Targets

A number of brokerages recently issued reports on CTAS. UBS Group lifted their target price on Cintas from $219.00 to $240.00 and gave the company a “buy” rating in a research report on Thursday. Royal Bank of Canada lifted their price objective on shares of Cintas from $181.00 to $215.00 and gave the company a “sector perform” rating in a report on Thursday. Redburn Atlantic started coverage on shares of Cintas in a report on Friday, August 9th. They set a “neutral” rating and a $167.50 target price for the company. Morgan Stanley lifted their price target on shares of Cintas from $170.00 to $185.00 and gave the company an “equal weight” rating in a research note on Thursday. Finally, Jefferies Financial Group reduced their price objective on shares of Cintas from $730.00 to $200.00 and set a “hold” rating for the company in a research note on Thursday. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating and seven have issued a buy rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $199.63.

Cintas announced that its Board of Directors has initiated a stock buyback program on Tuesday, July 23rd that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the business services provider to repurchase up to 1.3% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling

In other Cintas news, Director Gerald S. Adolph sold 4,400 shares of the stock in a transaction on Wednesday, July 24th. The stock was sold at an average price of $191.43, for a total transaction of $842,292.00. Following the transaction, the director now owns 125,808 shares in the company, valued at approximately $24,083,425.44. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 15.10% of the stock is currently owned by insiders.

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.