CINCINNATI - Cintas Corporation (NASDAQ:CTAS) reported better-than-expected second quarter earnings on Thursday, as the uniform rental and facility services provider saw strong revenue growth and margin expansion. CTAS shares were trading 1.6% higher following the results.
The company posted adjusted earnings per share of $1.09 for the quarter ended November 30, beating analyst estimates of $1.01. Revenue grew 7.8% YoY to $2.56 billion, in line with expectations.
"Cintas delivered strong results in the second quarter, with robust year-over-year revenue and earnings growth, excellent margin expansion and strong cash generation," said Todd M. Schneider, Cintas' President and CEO.
Gross margin improved to 49.8% from 48.0% in the year-ago quarter, driven by lower energy expenses. Operating income jumped 18.4% to $591.4 million.
The company's uniform rental and facility services segment, its largest business, saw revenue rise 7.6% to $1.99 billion. The first aid and safety services unit posted 12.4% growth to $299.4 million.
Looking ahead, Cintas raised its full-year earnings guidance. The company now expects fiscal 2025 EPS of $4.28 to $4.34, up from its previous outlook of $4.17 to $4.25 and above the $4.24 analyst consensus.
Revenue for the year is projected between $10.26 billion and $10.32 billion, a slight increase from the prior $10.22 billion to $10.32 billion range.
"We believe that Cintas' differentiated culture, superior products and services and industry-best talent continue to position us to deliver meaningful value creation in fiscal 2025 and beyond," Schneider added.
The company also declared a quarterly dividend of $0.39 per share, payable on December 13, representing a 14.9% increase from last year.
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