Why Corporate Apparel Company Cintas Shares Are Gaining Today

Cintas Corporation CTAS shares are trading higher on Wednesday.

The company reported third-quarter earnings per share of $3.84, beating the analyst consensus of $3.58.

Quarterly revenue of $2.406 billion beat the street view of $2.386 billion. Revenues rose 9.9% year over year.

Gross profit for the third quarter was $1.19 billion, marking an increase of 14.9% year over year. Gross margin expanded to 49.4% compared to 47.2% in last year’s third quarter.

Operating income for the third quarter of fiscal 2024 increased 16.6% to $520.8 million.

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Todd M. Schneider, Cintas’ President, and Chief Executive Officer, stated, “Each of our operating segments continue to execute at a high level, which led to robust revenue growth of 9.9%, record high gross margin of 49.4%, record high operating margin of 21.6% and diluted EPS growth of 22.3%.”

On March 15, 2024, Cintas paid an aggregate quarterly cash dividend of $137.6 million to shareholders, an increase of 17.1% from the amount paid last March.

Outlook: Cintas increased FY24 annual revenue expectations from $9.48 billion-$9.56 billion to $9.57 billion-$9.60 billion (estimate: $9.56 billion).

The firm raised EPS outlook from $14.35-$14.65 to $14.80-$15.00 (estimate: $14.60).

Price Action: CTAS shares are trading higher by 8.77% to $688.98 on the last check Wednesday.

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