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Cintas (CTAS) to Report Q2 Earnings: What's in the Offing?

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Cintas Corporation (CTAS - Free Report) is scheduled to release second-quarter fiscal 2022 (ended November 2021) results on Dec 22, before market open.

The company’s earnings surpassed estimates in the preceding four quarters, with an average earnings surprise of 11.53%. In the last reported quarter, the company’s earnings were $3.11, above the Zacks Consensus Estimate of $2.76 by 12.68%.

In the past three months, shares of the company have gained 11.5% compared with the industry’s growth of 10%.

 

Zacks Investment ResearchImage Source: Zacks Investment Research

 

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

Factors to Influence Q2 Results

Cintas has gained from strength across its healthcare and hygiene end markets over the past few quarters. The trend is expected to have continued in the fiscal second quarter. The demand for personal protective products has been solid, though not at the same level as during peak COVID times. Also, healthy demand for first-aid cabinet service is anticipated to have been beneficial for 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 second quarter of fiscal 2022, suggesting a 2.1% increase from the year-ago quarter’s reported figure and a decrease of 0.5% from the previous quarter’s reported number.

Strengthening economic recovery worldwide and the reopening of businesses have been improving the capacities of Cintas’ customers. This, in turn, is expected to have aided the performance of the Uniform Rental and Facility Services segment. Also, investments made to boost growth opportunities are likely to have been other tailwinds. However, challenges related to the labor market are anticipated to have been concerning.

The Zacks Consensus Estimate for Uniform Rental and Facility Services’ revenues is pegged at $1,523 million for the fiscal second quarter, indicating an 8% increase from the year-ago reported figure and 1% growth from the previous quarter’s reported number. All Other’s revenues are pinned at $184 million, indicating a 21.1% year-over-year increase and a 7.5% decrease from the previous quarter’s reported figure.

Solid product offerings, efficient sales force, investments in building facilities and innovative capabilities are expected to have been tailwinds. Focus on reducing costs and improving operational execution as well as debt-reduction are expected to have positively impacted the company’s performance.

On the flip side, a hike in wages, freight, supplies and energy costs are predicted to have been concerning. Woes related to international operations, stiff competition and high taxes are anticipated to have ailed.

The Zacks Consensus Estimate for Cintas’ fiscal second-quarter revenues is pegged at $1,906 million, suggesting a rise of 8.5% from the year-ago reported figure and a 0.5% increase from the previous quarter’s reported number. The Zacks Consensus Estimate for earnings per share is pegged at $2.62, suggesting no change from the year-ago reported number and a decline of 15.8% from the previous quarter’s reported figure.

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.

You can see the complete list of today’s Zacks #1 Rank stocks here.

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 $2.62.

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.

Nordson Corporation (NDSN - Free Report) has an Earnings ESP of +5.76% and it presently carries a Zacks Rank #3.

Shares of Nordson have increased 3.2% in the past three months. In the past 60 days, the Zacks Consensus Estimate for NDSN's earnings has increased 0.1% for fiscal 2022 (ending October 2022) and decreased 0.4% for fiscal 2023 (ending October 2023).

Colfax Corporation has an Earnings ESP of +2.39% and a Zacks Rank #3 at present.

Shares of Colfax decreased 0.9% in the past three months. In the past 60 days, the Zacks Consensus Estimate for CFX's earnings have decreased 1.4% for 2021 and increased 3.2% for 2022.

Kennametal Inc. (KMT - Free Report) currently has an Earnings ESP of +3.36% and a Zacks Rank #3.

Shares of Kennametal have increased 2.5% in the past three months. In the past 60 days, the Zacks Consensus Estimate for KMT's earnings has increased 0.5% for fiscal 2022 (ending June 2022) and grew 1.6% for fiscal 2023 (ending June 2023).


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Cintas Corporation (CTAS) - free report >>

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