Research Alert: Ctas Beats Feb-q Expectations; Raises Fy 25 Eps Guidance

10:10 AM EDT, 03/26/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

CTAS reported stronger-than-expected Feb-Q results, with revenue of $2.61 billion (+8% Y/Y) slightly exceeding consensus of $2.60 billion and adj. EPS of $1.13, beating estimates by $0.07 (+18% Y/Y). The Uniform Rental and Facility Services segment grew 8% to $2.02 billion, while First Aid and Safety Services showed robust growth of 15% to $301.8 million, indicating strong demand for safety-related products and services. Profitability improved significantly, with gross margin expanding 120 bps to 50.6% and operating margin increasing 180 bps to 23.4%, driving operating income up 17% to $609.9 million. CTAS narrowed its FY 25 (May) revenue expectations to a range of $10.280-$10.305 billion from a range of $10.255-$10.320 billion. Investors should note the potential headwinds from foreign currency exchange rate fluctuations, which are expected to negatively impact revenue by 0.4% in the second half of FY 25. CTAS provided a better EPS guidance to a range of $4.36-$4.40 from a range of $4.28-$4.34.

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