Cintas Earnings: Here’s Why the Stock is Falling Now

Cintas Corporation (NASDAQ:CTAS) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 4.47%.

Cintas Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 15% to $0.69 in the quarter versus EPS of $0.60 in the year-earlier quarter.

Revenue: Rose 7.17% to $1.13 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cintas Corporation reported adjusted EPS income of $0.69 per share. By that measure, the company missed the mean analyst estimate of $0.7. It missed the average revenue estimate of $1.13 billion.

Quoting Management: Scott D. Farmer, Chief Executive Officer, stated, “We are pleased to report another quarter of record revenue. In addition, our fourth quarter operating margin of 13.6% of revenue reflects the execution of our plan to sell profitable business, manage our cost structure and continuously improve the efficiency of our processes. These solid results conclude a successful year for Cintas achieved in large part by the hard work and dedication of our employees, who we call partners.”

Key Stats (on next page)…

Revenue increased 4.97% from $1.08 billion in the previous quarter. EPS increased 15% from $0.60 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.67 and has not changed. For the current year, the average estimate is a profit of $2.53, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]