Cintas Unveils Full-Year Guidance

Uniform rental company Cintas (CTAS) unveiled full-year guidance after markets shut on Tuesday as it posted better-than-expected results for its fiscal fourth-quarter which were buttressed by double-digit growth in its first aid operating segment.

The Cincinnati, Ohio-headquartered company, which also provides flame-resistant clothing and restroom and hygiene solutions, generated revenue of $1.79 billion in the three months ended May 31, up 7.4% from the corresponding quarter of the prior year. This was ahead of the consensus estimate of analysts polled by Capital IQ for $1.78 billion.

The organic revenue growth rate, which adjusted for the impacts of acquisitions and foreign currency exchange rate fluctuations, was 7.6%. Broken down by business segment, the organic revenue growth rate for the uniform rental and facility services operating segment was 6.8%, and the organic revenue growth rate for the first aid and safety services operating segment was 10.7%.

Adjusted earnings per share — which stripped out a negative impact of $0.10 in fiscal 2019 and $0.26 from fiscal 2018 from integration expenses related to the G&K acquisition — came in at $2.07, up from $1.77 a year earlier, also exceeding the Street’s forecast for $1.93 per share.

For the fiscal year 2020, the company is targeting revenue between $7.24 billion and $7.31 billion, which represents a year-on-year growth rate of 5-to-6%. Adjusted earnings per share are expected to be $8.30 to $8.45, representing a growth rate of 9.2% to 11.2%. Analysts projected $7.29 billion for full-year 2020 revenue and $8.46 per share in adjusted earnings per share.

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