Cintas Corporation (CTAS - Free Report) posted better-than-expected first-quarter fiscal 2020 (ended August 2019) results, with both earnings and revenues surpassing the Zacks Consensus Estimate.
Earnings/Revenues
Net income from continuing operations for the quarter jumped 18% to $250.8 million from $212.5 million in the year-ago quarter. Notably, adjusted earnings came in at $2.32 per share, up 20.2% year over year. Also, the bottom line surpassed the Zacks Consensus Estimate of $2.14.
Revenues increased 6.7% year over year to a record level of $1,811.1 million. The metric also improved 8.3% organically. Moreover, the top line surpassed the consensus estimate of $1,785 million.
Segmental Breakup
The Uniform Rental and Facility Services segment generated revenues worth $1,454.5 million in the fiscal first quarter, up 5.8% year over year. First Aid and Safety Services segment’s top line increased 12.2% to $172.1 million. Aggregate revenues from Other businesses came in at $184.5 million, up 8.8%.
Costs/Margins
Aggregate cost and expenses for the fiscal first quarter were $1,505 million, up 5% year over year. Gross profit margin improved 130 basis points (bps) to 46.9%.
Selling and administrative expenses were up 7.6% year over year to almost $543 million in the reported quarter. Operating margin was 16.9%, up 130 bps.
Balance Sheet/Cash Flow
At the end of the fiscal first quarter, cash and cash equivalents came in at $102.1 million compared with $96.6 million at the end of fourth-quarter fiscal 2019. Long-term debt increased to $3,488.3 million from $3,306.2 million sequentially.
For first three months of fiscal 2020, the company generated $276.9 million cash from operating activities, up 69.9% year over year. Capital expenditures were $64.7 million, up 0.3%.
In the fiscal first quarter, Cintas repurchased common stock worth $256.8 million under its buyback program.
Outlook
Cintas updated revenue guidance for fiscal 2020 (ending May 2020) in the range of $7.28-$7.32 billion from the previous view of $7.24-$7.31 billion. Notably, adjusted earnings view for the fiscal has been raised from $8.30-$8.45 per share to $8.47-$8.57.
Zacks Rank & Key Picks
Cintas currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Industrial Products sector are Zebra Technologies Corporation (ZBRA - Free Report) , Brady Corporation (BRC - Free Report) and Lakeland Industries, Inc. (LAKE - Free Report) . While Zebra Technologies currently sports a Zacks Rank #1 (Strong Buy), Brady and Lakeland Industries carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zebra Technologies delivered average positive surprise of 5.61% in the trailing four quarters.
Brady came up with average beat of 9.68% in the preceding four quarters.
Lakeland Industries pulled off average positive surprise of 325.89% in the last four quarters.
5 Stocks Set to Double
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Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Cintas Corporation (CTAS - Free Report) posted better-than-expected first-quarter fiscal 2020 (ended August 2019) results, with both earnings and revenues surpassing the Zacks Consensus Estimate.
Earnings/Revenues
Net income from continuing operations for the quarter jumped 18% to $250.8 million from $212.5 million in the year-ago quarter. Notably, adjusted earnings came in at $2.32 per share, up 20.2% year over year. Also, the bottom line surpassed the Zacks Consensus Estimate of $2.14.
Revenues increased 6.7% year over year to a record level of $1,811.1 million. The metric also improved 8.3% organically. Moreover, the top line surpassed the consensus estimate of $1,785 million.
Segmental Breakup
The Uniform Rental and Facility Services segment generated revenues worth $1,454.5 million in the fiscal first quarter, up 5.8% year over year. First Aid and Safety Services segment’s top line increased 12.2% to $172.1 million. Aggregate revenues from Other businesses came in at $184.5 million, up 8.8%.
Costs/Margins
Aggregate cost and expenses for the fiscal first quarter were $1,505 million, up 5% year over year. Gross profit margin improved 130 basis points (bps) to 46.9%.
Selling and administrative expenses were up 7.6% year over year to almost $543 million in the reported quarter. Operating margin was 16.9%, up 130 bps.
Balance Sheet/Cash Flow
At the end of the fiscal first quarter, cash and cash equivalents came in at $102.1 million compared with $96.6 million at the end of fourth-quarter fiscal 2019. Long-term debt increased to $3,488.3 million from $3,306.2 million sequentially.
For first three months of fiscal 2020, the company generated $276.9 million cash from operating activities, up 69.9% year over year. Capital expenditures were $64.7 million, up 0.3%.
In the fiscal first quarter, Cintas repurchased common stock worth $256.8 million under its buyback program.
Outlook
Cintas updated revenue guidance for fiscal 2020 (ending May 2020) in the range of $7.28-$7.32 billion from the previous view of $7.24-$7.31 billion. Notably, adjusted earnings view for the fiscal has been raised from $8.30-$8.45 per share to $8.47-$8.57.
Zacks Rank & Key Picks
Cintas currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Industrial Products sector are Zebra Technologies Corporation (ZBRA - Free Report) , Brady Corporation (BRC - Free Report) and Lakeland Industries, Inc. (LAKE - Free Report) . While Zebra Technologies currently sports a Zacks Rank #1 (Strong Buy), Brady and Lakeland Industries carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zebra Technologies delivered average positive surprise of 5.61% in the trailing four quarters.
Brady came up with average beat of 9.68% in the preceding four quarters.
Lakeland Industries pulled off average positive surprise of 325.89% in the last four quarters.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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