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