Cintas Q4 Results Smashes Estimates; Sees FY22 Revenue Below Consensus

Cintas Corp CTAS reported fourth-quarter FY21 sales growth of 13.33% year-on-year to $1.84 billion, beating the analyst consensus estimate of $1.82 billion.
The organic revenue growth rate was 11.5% for the quarter. Organic revenue growth rate for the Uniform Rental and Facility Services reportable operating segment was 13.7%, while it declined 6.8% for First Aid and Safety Services segment.
The gross margin increased by 310 basis points Y/Y to 46.8% in the quarter.
Selling and administrative expenses were $502.6 million.
Operating income increased 71.8% to $356.4 million.Operating margin increased 660 basis points to 19.4%.
Net income from continuing operations improved 85.2% to $267.7 million.
Diluted EPS of $2.47 beat the analyst consensus of $2.30.
The company held $493.6 million in cash and equivalents as of May 31, 2021.
Outlook: Cintas sees FY22 revenue between $7.53 billion - $7.63 billion, with the consensus at $7.66 billion.
The company expects FY22 EPS of $10.35-$10.75, with the consensus at $10.25.
Price action: CTAS shares are trading lower by 2.22% at $370.53 on the last check Thursday.

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