Cintas Corporation, a leading uniform supplier, has projected continued revenue and earnings growth for the current fiscal year following solid results reported for their fiscal fourth quarter. The company expects revenue to be in the range of $10.16 billion to $10.31 billion for fiscal 2025, reflecting an increase from the previous year’s revenue of $9.60 billion, as reported for the year ending May 31.
Analysts participating in a Capital IQ survey have an estimated average revenue forecast of $10.27 billion for the ongoing year. In terms of earnings per share, Cintas is forecasting a full-year EPS between $16.25 and $16.75, compared to the $15.15 reported for fiscal 2024. Market expectations suggest a GAAP EPS of $16.42.
Following the announcement, Cintas' shares experienced a notable rise of 6.4% in afternoon trading. CEO Todd Schneider expressed optimism during a conference call, stating, "As we move into fiscal 2025, we expect to exceed $10 billion in annual revenue for the first time. This outlook, coupled with our strong fiscal 2024 results, demonstrates that our value proposition continues to resonate with our customers." Cintas reported that for the fiscal fourth quarter, revenue climbed to $2.47 billion, up from $2.28 billion, aligning with the consensus of analysts surveyed by Capital IQ.
The earnings per share increased to $3.99, up from $3.33 year-over-year, surpassing the $3.80 estimated by market analysts. Chief Financial Officer J. Michael Hansen commented on the company’s robust performance, attributing the strong revenue growth to new customer acquisitions and deeper engagement with existing clients through expanded product and service offerings.
This operational leverage, enhanced by effective supply chain management and strategic measures to eliminate inefficiencies, has played a crucial role in Cintas' successful fiscal quarter. In the breakdown of different service lines, revenue from uniform rental and facility services rose significantly to $1.91 billion from $1.77 billion in the previous year.
Additionally, the gross margin for this segment showed improvement, increasing by 90 basis points to 48.6%, according to Hansen’s report. Furthermore, the company reported an increase in first aid and safety services revenue, which climbed to $277.6 million from $249.8 million the year before. With these promising figures and strategic growth plans, Cintas remains well-positioned for continued success and expansion in its market sector. Price: 764.34, Change: +44.56, Percent Change: +6.19 $CTAS.