Cintas Corp. (CTAS) Tops Q1 EPS by 15c; Raises Outlook

Cintas Corp. (NASDAQ: CTAS) reported Q1 EPS of $1.45, $0.15 better than the analyst estimate of $1.30. Revenue for the quarter came in at $1.6 billion versus the consensus estimate of $1.57 billion.

GUIDANCE:

Cintas Corp. sees FY2018 EPS of $5.30-$5.38, versus the consensus of $5.22. Cintas Corp. sees FY2018 revenue of $6.325-6.4 billion, versus the consensus of $6.33 billion.

cott D. Farmer, Cintas’ Chairman and Chief Executive Officer, stated, “Our revenue growth rate of 27.2% was driven largely by our acquisition of G&K Services. The integration of G&K continues to proceed as expected, and we remain on track to meet the acquisition’s financial and non-financial objectives. In addition, we remain focused on our vision of increasing the number of businesses we help get Ready for the WorkdayTM and of adding greater value to our existing customers by providing them with more of our industry-leading products and services. Our high organic growth rates are evidence of this focus. I thank our employees, whom we call partners, for their continued solid execution.”

Mr. Farmer concluded, “As a result of our first quarter results, we are increasing our annual guidancefor fiscal 2018. We expect revenue to be in the range of $6.325 billion to $6.400 billion and EPS from continuing operations to be in the range of $5.30 to $5.38. Fiscal 2018 guidance excludes any future transaction and integration expenses related to the acquired G&K business. The guidance does, however, include our preliminary estimates of the negative impact from the major hurricanes affecting Texas, Florida, Puerto Rico and surrounding areas. Based on an early assessment, we estimate fiscal 2018 revenue to be reduced by approximately $10 million to $15 million and EPS to be reduced by approximately $0.05 to $0.08. These estimates are subject to change as more information becomes available.”

For earnings history and earnings-related data on Cintas Corp. (CTAS) click here.

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