Cintas Shares Hit a Record High Thursday—Here's Why
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Key TakeawaysCintas beat profit and sales estimates and gave strong fiscal 2025 guidance as it added new customers, sold more to existing customers, and reduced expenses.Revenue was up 8.2% to an all-time high of $2.47 billion.The news sent shares into record territory, leaving them up some 30% this year.
Shares of Cintas (CTAS) traded at an all-time high Thursday, extending a strong year, after the business supplies company reported better-than-expected results and gave an upbeat outlook.The provider of workplace uniforms posted fiscal 2024 fourth-quarter adjusted earnings per share (EPS) of $3.99, with revenue increasing 8.2% to a record $2.47 billion. Both were above forecasts.CFO Mike Hansen said Cintas benefited from both new customers and strength with existing ones, as well as supply chain improvements. The company made “focused efforts to extract inefficiencies from the business," Hansen said.In a conference call, CEO Todd Schneider discussed customer retention he called "strong.""When you have as broad of a customer base as we do, there are certainly some aspects that are thriving and some that are struggling," he said in a transcript provided by AlphaSense. "It varies based upon industry. It varies based upon geography. But when you speak as a whole, I would say ... we haven't seen much change in it so far.Cintas anticipates fiscal 2025 adjusted EPS of $16.25 to $16.75, and sales of $10.16 billion to $10.31 billion. Schneider said the guidance “reflects our continued confidence in our strategy.”Cintas shares, which rose more than 5% today, are up about 30% this year. Read the original article on Investopedia.
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