Cintas Surpasses Q3 Estimates With Strong Growth, Raises FY25 EPS Outlook

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Cintas Surpasses Q3 Estimates With Strong Growth, Raises FY25 EPS Outlook

, Benzinga - 10:38 AM ET 3/26/2025 default

Cintas Corporation ( CTAS ) reported third-quarter earnings per share of $1.13 on Wednesday, beating the street view of $1.06. Quarterly sales of $2.609 billion (+8.4% year over year) outpaced the analyst consensus estimate of $2.597 billion.

The company’s shares are trading higher following the announcement of the results.

The organic revenue growth rate for the third quarter, which adjusts for the impacts of acquisitions and foreign currency exchange rate fluctuations, was 7.9%.

Quarterly gross profit was $1.32 billion, an increase of 11.1% year over year. Gross margin expanded to 50.6% from 49.4% in last year’s third quarter, an increase of 120 basis points.

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Operating income for the third quarter increased 17.1% to $609.9 million. Operating margin was 23.4%, compared to 21.6% in last year’s third quarter.

Todd M. Schneider, Cintas’ President and Chief Executive Officer, stated, “Cintas delivered strong revenue growth, operating margins and cash flow generation in the third quarter.”

The company exited the quarter with cash and equivalents worth $243.428 million. Inventories were $420.826 million.

On March 14, Cintas ( CTAS ) paid an aggregate quarterly dividend of $158.1 million to shareholders, an increase of 14.9% from the amount paid last March.

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Outlook: Cintas ( CTAS ) raises FY25 outlook. The company sees revenues of $10.28 billion – $10.305 billion versus $10.296 billion estimate (prior view: $10.255 billion – $10.32 billion).

The company attributed the $15.0 million reduction at the top of the range to the negative impact of the foreign currency exchange rate fluctuations experienced in the third quarter and the expected impact for the fourth quarter.

The firm projects EPS of $4.36 – $4.44 versus the $4.32 estimate (prior view: $4.28 – $4.34).

Price Action: CTAS shares are trading higher by 8.1% to $209.14 at last check Wednesday.

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