Cintas (NASDAQ:CTAS) Issues Earnings Results

Cintas (NASDAQ:CTAS) released its earnings results on Wednesday. The business services provider reported $1.10 EPS for the quarter, beating the consensus estimate of $1.00 by $0.10, Briefing.com reports. Cintas had a return on equity of 37.82% and a net margin of 16.38%. The company had revenue of $2.50 billion during the quarter, compared to analysts’ expectations of $2.49 billion. During the same period last year, the firm earned $3.70 EPS. The business’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 Trading Down 1.8 %

Shares of Cintas stock traded down $3.75 on Friday, hitting $203.26. 580,555 shares of the company traded hands, compared to its average volume of 1,482,827. Cintas has a 52 week low of $119.69 and a 52 week high of $211.57. The company has a market cap of $20.62 billion, a PE ratio of 14.09, a PEG ratio of 4.09 and a beta of 1.32. 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 current ratio of 1.74, a quick ratio of 1.52 and a debt-to-equity ratio of 0.47.

Cintas Cuts Dividend

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

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on CTAS shares. Wells Fargo & Company upped their price target on Cintas from $184.00 to $191.00 and gave the stock an “underweight” rating in a research report on Thursday. Royal Bank of Canada raised their target price on shares of Cintas from $181.00 to $215.00 and gave the stock a “sector perform” rating in a research note on Thursday. Truist Financial lifted their price objective on Cintas from $212.50 to $225.00 and gave the company a “buy” rating in a report on Tuesday, September 17th. Stifel Nicolaus raised their target price on shares of Cintas from $166.75 to $199.50 and gave the company a “hold” rating in a research report on Friday, July 19th. Finally, Barclays increased their price target on Cintas from $210.00 to $245.00 and gave the company an “overweight” rating in a research note on Friday. Two equities research analysts have rated the stock with a sell rating, nine have given a hold rating and seven have issued a buy rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $199.63.

Cintas announced that its Board of Directors has initiated a share buyback 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 repurchase up to 1.3% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling at Cintas

In other Cintas news, Director Gerald S. Adolph sold 4,400 shares of the 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 transaction, the director now directly owns 125,808 shares in the company, valued at approximately $24,083,425.44. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 15.10% of the stock is currently owned by corporate 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.