Cintas Beats Expectations With Strong Q4 Earnings, Sets Ambitious FY25 Revenue Target

Cintas Corporation CTAS reported fourth-quarter earnings per share of $3.99, beating the street view of $3.80.

The company registered quarterly revenues of $2.471 billion, beating the street view of $2.468 billion. Revenues grew 8.2% year over year.

The organic revenue growth rate for the fourth quarter of fiscal 2024, which adjusts for the impacts of acquisitions, foreign currency exchange rate fluctuations and workday differences, was 7.5%.

Gross margin as a percentage of revenue was 49.2% for the fourth quarter of fiscal 2024 compared to 47.7% in last year’s fourth quarter, an increase of 150 basis points.

On May 2, 2024, Cintas announced that its Board of Directors approved a four-for-one split of its common stock.

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Shareholders of record, as of September 4, 2024, will receive three additional shares for each share held, which will be distributed after market close on September 11. 

For the fiscal year ended May 31, 2024, revenue was $9.60 billion compared to $8.82 billion for fiscal 2023, an increase of 8.9%.

Cintas spent $409.5 million on capital expenditures in fiscal 2024, which is 4.3% as a percentage of revenue. 

“Strong cash generation continued to fuel our balanced capital allocation strategy, focusing on new products and services for our customers and new technology to further enhance our position for the long-term, investing in strategic acquisitions and on returning capital to shareholders,” said Todd M. Schneider, Cintas’ President and Chief Executive Officer.

Outlook: Cintas sees FY25 revenue $10.16 billion-$10.31 billion versus the $10.27 billion estimate.

The company sees FY25 EPS of $16.25-$16.75 versus the $16.43 estimate.

Price Action: CTAS shares are trading higher by 5.592% to $760.04 at last check Thursday.

Photo via Wikimedia Commons

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