Cintas Corporation (CTAS), a leading provider of corporate apparel and facility services, has delivered impressive results for its first quarter, exceeding both earnings and revenue expectations. The company reported earnings per share of $1.10, outperforming the analyst consensus of 95 cents. Quarterly sales reached $2.50 billion, a 6.8% increase year-over-year and slightly surpassing the estimated $2.495 billion.
This strong performance was driven by robust growth in key metrics. Gross profit for the quarter jumped to $1.25 billion, a significant 9.7% increase from the previous year’s first quarter. This growth translated into an expanded gross margin, reaching 50.1% compared to 48.7% in the prior year. Cintas also experienced a significant rise in cash flow from operating activities, reaching $466.7 million, a 38.5% increase from the same period last year.
“Cintas continued to reinvest in our customers and our employee-partners to ensure we are best positioned to deliver long-term value for our shareholders,” said Todd M. Schneider, Cintas’ President and Chief Executive Officer.
The company ended the quarter with a healthy cash and equivalents balance of $101.373 million and total net inventories of $399.078 million.
Looking ahead, Cintas has raised its annual revenue expectations for fiscal year 2025. The company now forecasts revenue to be between $10.22 billion and $10.32 billion, compared to its previous estimate of $10.16 billion to $10.31 billion. This adjustment reflects the company’s strong performance and positive outlook. Cintas has also increased its earnings per share (EPS) guidance for FY25 from $4.06 – $4.19 to $4.17 – $4.25, accounting for the impact of its four-for-one stock split that took effect on September 11.
Following the release of these positive results, CTAS shares experienced a slight increase, trading higher by 0.66% to $206.20 at last check on Wednesday.
The company’s strong performance and raised guidance signal a positive trajectory for Cintas. The company’s focus on customer satisfaction and reinvestment in its workforce seems to be paying dividends, setting the stage for sustained growth in the coming months and years.
