Cintas (NASDAQ:CTAS) Announces Earnings Results

Cintas (NASDAQ:CTAS) posted its earnings results on Wednesday. The business services provider reported $1.10 EPS for the quarter, beating the consensus estimate of $1.00 by $0.10, Briefing.com reports. The company had revenue of $2.50 billion during the quarter, compared to analyst estimates of $2.49 billion. Cintas had a return on equity of 37.82% and a net margin of 16.38%. The business’s revenue was up 6.8% compared to the same quarter last year. During the same period in the prior year, the company earned $3.70 earnings per share. Cintas updated its FY25 guidance to $4.17-4.25 EPS and its FY 2025 guidance to 4.170-4.250 EPS.

Cintas Stock Performance

Shares of CTAS opened at $202.35 on Friday. Cintas has a one year low of $119.69 and a one year high of $211.57. The company has a 50-day moving average of $208.88 and a two-hundred day moving average of $183.98. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.74 and a quick ratio of 1.52. The stock has a market cap of $20.53 billion, a price-to-earnings ratio of 13.97, a PEG ratio of 4.09 and a beta of 1.32.

Cintas Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 3rd. Stockholders of record on Thursday, August 15th were given a dividend of $0.39 per share. The ex-dividend date of this dividend was Thursday, August 15th. This represents a $1.56 annualized dividend and a dividend yield of 0.77%. Cintas’s dividend payout ratio (DPR) is 10.77%.

Analysts Set New Price Targets

CTAS has been the subject of a number of recent research reports. Barclays upped their price objective on Cintas from $210.00 to $245.00 and gave the stock an “overweight” rating in a research note on Friday. Robert W. Baird boosted their target price on shares of Cintas from $194.00 to $209.00 and gave the company a “neutral” rating in a research note on Thursday. UBS Group upped their target price on shares of Cintas from $219.00 to $240.00 and gave the stock a “buy” rating in a research report on Thursday. Redburn Atlantic started coverage on Cintas in a report on Friday, August 9th. They set a “neutral” rating and a $167.50 price target on the stock. Finally, The Goldman Sachs Group increased their price objective on Cintas from $212.00 to $236.00 and gave the stock a “buy” rating in a report on Thursday. Two equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and seven have issued a buy rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $199.63.

Cintas announced that its Board of Directors has approved a share repurchase plan on Tuesday, July 23rd that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the business services provider to reacquire up to 1.3% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling

In other Cintas news, Director Gerald S. Adolph sold 4,400 shares of the business’s stock in a transaction on Wednesday, July 24th. The shares were sold at an average price of $191.43, for a total transaction of $842,292.00. Following the sale, the director now directly owns 125,808 shares of the company’s stock, valued at approximately $24,083,425.44. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Company insiders own 15.10% of the company’s stock.

About Cintas

Cintas Corporation engages in the provision of corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments. The company rents and services uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, as well as sells uniforms.