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The Zacks Consensus Estimate for earnings has remained steady in the past 60 days. The company has a stellar earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average beat being 7.6%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Let’s see how things have shaped up before Cintas’ fiscal fourth-quarter earnings release.
Factors to Note Ahead of CTAS’ Results
Strong growth from new customers and penetration of additional products and services into existing customers are expected to have driven the Uniform Rental and Facility Services segment’s performance in the fiscal fourth quarter. We expect segmental revenues to be $2.02 billion, implying an increase of 5.7% from the year-ago level.
Increasing demand for AED Rentals, eyewash stations and WaterBreak products is likely to have supported the performance of the First Aid and Safety Services segment. We expect this segment’s revenues to be $313.1 million, implying an increase of 12.8% from the year-ago number.
Also, synergistic gains from the acquisitions of Paris Uniform Services (March 2024) and SITEX (February 2024) are expected to have boosted the company’s revenues in the to-be-reported quarter. While the Paris Uniform Services buyout has enhanced Cintas’ presence in Pennsylvania, New York, Maryland and West Virginia, the SITEX acquisition has boosted its market position in the U.S. central Midwest region.
CTAS is anticipated to have put up a healthy margin performance, supported by its focus on operational execution and pricing actions. We expect the operating margin to improve 50 basis points from the prior-year level.
The Zacks Consensus Estimate for the company’s revenues is pegged at $2.63 billion, which implies an increase of 6.3% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings is pinned at $1.07 per share, indicating a 7% increase from the year-ago quarter’s reported number.
However, escalating costs of sales and selling, general and administrative (SG&A) expenses are likely to weigh on the company’s bottom-line results. For the quarter under review, we anticipate SG&A expenses to be $714.4 million, indicating a 7% increase from the year-earlier level.
Given the company’s extensive geographic presence, its operations are subject to global political risks and foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt CTAS’ overseas business in the quarter.
Our proven model does not conclusively predict an earnings beat for CTAS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: CTAS has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.07 per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Here are some companies within the broader Business Services sector, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
Equifax Inc. (EFX - Free Report) has an Earnings ESP of +1.46% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2025 results on July 22.
Equifax’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 4.2%.
PayPal Holdings, Inc. (PYPL - Free Report) has an Earnings ESP of +0.48% and a Zacks Rank of 3 at present. The company is scheduled to release second-quarter 2025 results on July 29.
PayPal’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 14%.
TransUnion (TRU - Free Report) has an Earnings ESP of +1.65% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2025 results on July 24.
TransUnion’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 2.8%.
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Cintas Gears Up to Report Q4 Earnings: What's in the Offing?
Key Takeaways
Cintas Corporation (CTAS - Free Report) is scheduled to release fourth-quarter fiscal 2025 (ended May 2025) results on July 17, before market open.
The Zacks Consensus Estimate for earnings has remained steady in the past 60 days. The company has a stellar earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average beat being 7.6%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Let’s see how things have shaped up before Cintas’ fiscal fourth-quarter earnings release.
Factors to Note Ahead of CTAS’ Results
Strong growth from new customers and penetration of additional products and services into existing customers are expected to have driven the Uniform Rental and Facility Services segment’s performance in the fiscal fourth quarter. We expect segmental revenues to be $2.02 billion, implying an increase of 5.7% from the year-ago level.
Increasing demand for AED Rentals, eyewash stations and WaterBreak products is likely to have supported the performance of the First Aid and Safety Services segment. We expect this segment’s revenues to be $313.1 million, implying an increase of 12.8% from the year-ago number.
Also, synergistic gains from the acquisitions of Paris Uniform Services (March 2024) and SITEX (February 2024) are expected to have boosted the company’s revenues in the to-be-reported quarter. While the Paris Uniform Services buyout has enhanced Cintas’ presence in Pennsylvania, New York, Maryland and West Virginia, the SITEX acquisition has boosted its market position in the U.S. central Midwest region.
CTAS is anticipated to have put up a healthy margin performance, supported by its focus on operational execution and pricing actions. We expect the operating margin to improve 50 basis points from the prior-year level.
The Zacks Consensus Estimate for the company’s revenues is pegged at $2.63 billion, which implies an increase of 6.3% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings is pinned at $1.07 per share, indicating a 7% increase from the year-ago quarter’s reported number.
However, escalating costs of sales and selling, general and administrative (SG&A) expenses are likely to weigh on the company’s bottom-line results. For the quarter under review, we anticipate SG&A expenses to be $714.4 million, indicating a 7% increase from the year-earlier level.
Given the company’s extensive geographic presence, its operations are subject to global political risks and foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt CTAS’ overseas business in the quarter.
Cintas Corporation Price and EPS Surprise
Cintas Corporation price-eps-surprise | Cintas Corporation Quote
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for CTAS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: CTAS has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.07 per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: CTAS presently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some companies within the broader Business Services sector, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
Equifax Inc. (EFX - Free Report) has an Earnings ESP of +1.46% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2025 results on July 22.
Equifax’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 4.2%.
PayPal Holdings, Inc. (PYPL - Free Report) has an Earnings ESP of +0.48% and a Zacks Rank of 3 at present. The company is scheduled to release second-quarter 2025 results on July 29.
PayPal’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 14%.
TransUnion (TRU - Free Report) has an Earnings ESP of +1.65% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2025 results on July 24.
TransUnion’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 2.8%.