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Cintas (CTAS) to Report Q1 Earnings: What's in the Offing?

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Cintas Corporation (CTAS - Free Report) is scheduled to release first-quarter fiscal 2022 (ended August 2021) results on Sep 29, before market open.

The company delivered impressive results in the last four quarters, beating estimates on all occasions. Its average earnings surprise was 15.53%. In the last reported quarter, the company’s earnings were $2.47, surpassing the Zacks Consensus Estimate of $2.33 by 6.01%.

In the past three months, shares of the company have gained 5.8% compared with the industry’s growth of 4.4%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Let us see how things have shaped up for Cintas this earnings season.

Factors to Influence Q1 Results

Cintas has gained from strength across its healthcare and hygiene end markets, with solid demand for personal protective products, in the last reported quarter. The trend is likely to have continued in the to-be-reported quarter and boosted the top-line performance of the First Aid and Safety Services segment. The Zacks Consensus Estimate of the First Aid and Safety Services’ segment revenues are pegged at $198 million for the first quarter of fiscal 2022, suggesting a 2.9% decline from the year-ago quarter’s reported figure and an increase of 5.9% from the previous quarter’s reported number.

The reopening of business and improving capacities of customers are likely to have boosted the performance of the Uniform Rental and Facility Services segment. Also, momentum in the fire businesses is expected to have boosted the top-line performance of the All Other segment.

The Zacks Consensus Estimate for Uniform Rental and Facility Services’ revenues is pegged at $1,497 million for the fiscal first quarter, indicating a 7.4% increase from the year-ago reported figure and 2% growth from the previous quarter’s reported number. All Other’s revenues are pinned at $169 million, indicating a 14.2% year-over-year increase and a 54.2% decrease from the previous quarter’s reported figure.

In addition to the segmental strength, Cintas’ focus on building a solid product portfolio, customer base, supply chain and sales force is expected to have positively impacted the fiscal first-quarter performance. Synergistic gains from acquired assets and healthy rewards to shareholders are expected to have been advantageous. On the flip side, high costs and expenses as well as international exposure and stiff competition are likely to have played spoilsports in the quarter. High taxes are anticipated to have adversely impacted the bottom line in the quarter. For fiscal 2022 (ending May 2022), the company expects a tax rate of 19.5-20.5%, suggesting a rise from 13.7% in the prior year.

The Zacks Consensus Estimate for the company’s fiscal first-quarter revenues is pegged at $1,873 million, suggesting a rise of 7.2% from the year-ago reported figure and 2% growth from the previous quarter’s reported number. The Zacks Consensus Estimate for earnings per share stands at $2.76, suggesting a decrease of 0.7% from the year-ago reported number and sequential growth of 11.7%.

Earnings Whispers

Our proven model provides some idea about the stocks that are about to release their earnings results. Per the model, a stock needs a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The case with Cintas has been provided below.

Earnings ESP: The company has an Earnings ESP of 0.00%, with both the Most Accurate Estimate and the Zacks Consensus Estimate pegged at $2.76.

Cintas Corporation Price, Consensus and EPS Surprise

 

Cintas Corporation Price, Consensus and EPS Surprise

Cintas Corporation price-consensus-eps-surprise-chart | Cintas Corporation Quote

Zacks Rank: Cintas currently carries a Zacks Rank #3.

Stocks to Consider

Here are some companies in the Zacks Industrial Products sector that you may want to consider as these have the right combination of elements, per our model.

Alcoa Corporation (AA - Free Report) has an Earnings ESP of +6.95% and it presently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

IDEX Corporation (IEX - Free Report) has an Earnings ESP of +0.12% and a Zacks Rank #2 at present.

Johnson Controls International plc (JCI - Free Report) currently has an Earnings ESP of +0.65% and a Zacks Rank #2.