Cintas’ CFO Meeting Takeaways
RBC Capital analysts provided their key takeaways from Cintas Corporation (NASDAQ:CTAS) CFO meeting, where he highlighted strong momentum in the business driven by an increased propensity to outsource, targeting a large addressable market, including recession-resilient end markets with a broad set of offerings and robust retention.
CFO Mike Hansen highlighted Scale, Innovation, and Technology as the key competitive advantage driving accelerated growth while expanding margins.
With an under-levered balance sheet, the analysts expect a greater focus on M&A. Lastly, the facility tour helped them appreciate the benefits of automation and SAP implementation. The analysts reiterated their Outperform rating and $525 price target.
| Symbol | Price | %chg |
|---|---|---|
| JTPE.JK | 272 | 0 |
| 7911.T | 4097 | 0 |
| 7912.T | 4848 | 0 |
| ASGR.JK | 780 | 0 |
Cintas Reports Q2 Beat, Provides Guidance
Cintas Corp. (NASDAQ:CTAS) reported its Q2 results, with EPS of $3.12 coming in better than the Street estimate of $3.03. Revenue was $2.17 billion, beating the Street estimate of $2.13 billion.
The company delivered on high expectations with organic growth of 12.8% (vs. Street estimate of 10%), a gross margin beat of approximately 70 bps, and an operating margin beat of nearly 50 bps vs. Street.
Management raised its fiscal 2023 outlook, now expecting 10.4-11.4% organic growth and an EPS raise that flowed through more than the beat. The company expects fiscal 2023 EPS in the range of $12.50-$12.80, compared to the prior guidance of $12.30-$12.65 and the Street estimate of $12.58. Full-year revenue is expected to be in the range of $8.67-8.75 billion, compared to the prior guidance of $8.58-$8.67 billion and the Street estimate of $8.63 billion.
Cintas Reports Q2 Beat, Provides Guidance
Cintas Corp. (NASDAQ:CTAS) reported its Q2 results, with EPS of $3.12 coming in better than the Street estimate of $3.03. Revenue was $2.17 billion, beating the Street estimate of $2.13 billion.
The company delivered on high expectations with organic growth of 12.8% (vs. Street estimate of 10%), a gross margin beat of approximately 70 bps, and an operating margin beat of nearly 50 bps vs. Street.
Management raised its fiscal 2023 outlook, now expecting 10.4-11.4% organic growth and an EPS raise that flowed through more than the beat. The company expects fiscal 2023 EPS in the range of $12.50-$12.80, compared to the prior guidance of $12.30-$12.65 and the Street estimate of $12.58. Full-year revenue is expected to be in the range of $8.67-8.75 billion, compared to the prior guidance of $8.58-$8.67 billion and the Street estimate of $8.63 billion.
Cintas Corporation’s Upcoming Q2 Results Preview
Deutsche Bank analysts provided their outlook on Cintas Corporation (NASDAQ:CTAS) ahead of the company’s Q2 earnings, scheduled to be reported on Dec 21.
Following the strong stock price outperformance over the last three months, the analysts see implicit expectations as elevated into the print next week, with another "beat and raise" anticipated. The analysts are modeling over 10% organic growth for fiscal Q2/23, a deceleration from the Q1/23 level of 13.9% amidst tougher comps and a slowdown in year-over-year labor growth.
Acknowledging that there is some uncertainty with respect to the overall macro environment later in 2023, the analysts don't expect to hear of any slowing on the ground. The analysts raised their price target to $490 from $465 while reiterating their Buy rating.
Cintas Corporation’s Upcoming Q2 Results Preview
Deutsche Bank analysts provided their outlook on Cintas Corporation (NASDAQ:CTAS) ahead of the company’s Q2 earnings, scheduled to be reported on Dec 21.
Following the strong stock price outperformance over the last three months, the analysts see implicit expectations as elevated into the print next week, with another "beat and raise" anticipated. The analysts are modeling over 10% organic growth for fiscal Q2/23, a deceleration from the Q1/23 level of 13.9% amidst tougher comps and a slowdown in year-over-year labor growth.
Acknowledging that there is some uncertainty with respect to the overall macro environment later in 2023, the analysts don't expect to hear of any slowing on the ground. The analysts raised their price target to $490 from $465 while reiterating their Buy rating.
Cintas Reports Q1 Beat, Raises 2023 Outlook
Cintas Corp. (NASDAQ:CTAS) reported its Q1 results, with EPS of $3.39 coming in better than the Street estimate of $3.11. Revenue was $2.17 billion, beating the Street estimate of $2.08 billion.
The company raised its fiscal 2023 outlook, expecting EPS to be in the range of $12.30-$12.65, compared to the Street estimate of $12.27, and revenue in the range of $8.58-8.67 billion, compared to the Street estimate of $8.5 billion.
Implied top-line growth for the remainder of the year of 8.5% at midpoint suggests upside – notwithstanding tougher comps – given strong and continued business momentum across verticals with strong retention and new business wins.
According to the analysts at RBC Capital, the company's recent investments (particularly in technology) are allowing it to gain a share and win new business. On the margin front, the labor environment is easing ever so slightly and energy costs are rolling over.
Cintas Reports Q1 Beat, Raises 2023 Outlook
Cintas Corp. (NASDAQ:CTAS) reported its Q1 results, with EPS of $3.39 coming in better than the Street estimate of $3.11. Revenue was $2.17 billion, beating the Street estimate of $2.08 billion.
The company raised its fiscal 2023 outlook, expecting EPS to be in the range of $12.30-$12.65, compared to the Street estimate of $12.27, and revenue in the range of $8.58-8.67 billion, compared to the Street estimate of $8.5 billion.
Implied top-line growth for the remainder of the year of 8.5% at midpoint suggests upside – notwithstanding tougher comps – given strong and continued business momentum across verticals with strong retention and new business wins.
According to the analysts at RBC Capital, the company's recent investments (particularly in technology) are allowing it to gain a share and win new business. On the margin front, the labor environment is easing ever so slightly and energy costs are rolling over.
