We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cintas (CTAS) Down 4.8% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
A month has gone by since the last earnings report for Cintas (CTAS - Free Report) . Shares have lost about 4.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Cintas due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Cintas reported first-quarter fiscal 2026 (ended Aug. 31, 2025) earnings of $1.20 per share, which beat the Zacks Consensus Estimate of $1.19. The bottom line rose 9.1% year over year.
Total revenues of $2.72 billion outperformed the consensus estimate of $2.70 billion. The top line rose 8.7% year over year, driven by higher segmental revenues. Organic sales were up 7.8% year over year.
Cintas’ Segmental Results
The company has two reportable segments, Uniform Rental and Facility Services and First Aid and Safety Services. Other businesses like Uniform Direct Sale and Fire Protection Services are included in All Other. Quarterly sales data is briefly discussed below.
Revenues from the Uniform Rental and Facility Services segment (representing 76.9% of the quarter’s net sales) totaled $2.09 billion, up 8.1% year over year.
Revenues from the First Aid and Safety Services segment (representing 12.3% of the quarter’s net sales) totaled $334.7 million, up 14.4% year over year.
Revenues from All Other business (representing 10.8% of the quarter’s net sales) totaled $292.4 million, up 6.3% year over year.
Margin Profile
Cintas’ cost of sales (comprising costs related to uniform rental and facility services and others) increased 8.2% year over year to $1.35 billion. It represented 49.7% of net sales. Gross profit increased 9.1% to $1.37 billion. The gross margin was 50.3% compared with 50.1% in the year-ago period.
Selling and administrative expenses totaled $748.7 million, reflecting an 8.3% increase from the year-ago figure. It represented 27.5% of net sales. Operating income increased 10.1% year over year to $617.9 million. The operating margin was 22.7% compared with 22.4% in the year-ago quarter. Interest expenses decreased 5.7% to $24.2 million.
Cintas’ Balance Sheet & Cash Flow
Exiting the first three months of fiscal 2026, Cintas had cash and cash equivalents of $138.1 million compared with $264 million at the end of fiscal 2025. Long-term debt was about $2.43 billion compared with $2.42 billion at the end of fiscal 2025.
In the first three months of fiscal 2026, it generated net cash of $414.5 million from operating activities, down 10% from the year-ago period. Capital expenditures in the same period totaled $102 million, up 9.7% year over year. Free cash flow decreased 14.9% year over year to $312.5 million.
The company repurchased shares worth $266.1 million compared with $614.8 million in the year-ago period. Dividend payments totaled $157.8 million, up 14.1% year over year.
FY26 Guidance
For fiscal 2026, Cintas expects revenues to be in the range of $11.06-$11.18 billion compared with $11-$11.15 billion anticipated earlier. Earnings per share are estimated to be in the range of $4.74-$4.86 compared with $4.71-$4.85 anticipated earlier.
Cintas predicts net interest expenses of approximately $97 million. This compares with interest expenses of $95 million recorded in fiscal 2025. The effective tax rate is expected to be 20%.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Cintas has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Cintas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Cintas (CTAS) Down 4.8% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Cintas (CTAS - Free Report) . Shares have lost about 4.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Cintas due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Cintas' Q1 Earnings Surpass Estimates, Revenues Increase Y/Y
Cintas reported first-quarter fiscal 2026 (ended Aug. 31, 2025) earnings of $1.20 per share, which beat the Zacks Consensus Estimate of $1.19. The bottom line rose 9.1% year over year.
Total revenues of $2.72 billion outperformed the consensus estimate of $2.70 billion. The top line rose 8.7% year over year, driven by higher segmental revenues. Organic sales were up 7.8% year over year.
Cintas’ Segmental Results
The company has two reportable segments, Uniform Rental and Facility Services and First Aid and Safety Services. Other businesses like Uniform Direct Sale and Fire Protection Services are included in All Other. Quarterly sales data is briefly discussed below.
Revenues from the Uniform Rental and Facility Services segment (representing 76.9% of the quarter’s net sales) totaled $2.09 billion, up 8.1% year over year.
Revenues from the First Aid and Safety Services segment (representing 12.3% of the quarter’s net sales) totaled $334.7 million, up 14.4% year over year.
Revenues from All Other business (representing 10.8% of the quarter’s net sales) totaled $292.4 million, up 6.3% year over year.
Margin Profile
Cintas’ cost of sales (comprising costs related to uniform rental and facility services and others) increased 8.2% year over year to $1.35 billion. It represented 49.7% of net sales. Gross profit increased 9.1% to $1.37 billion. The gross margin was 50.3% compared with 50.1% in the year-ago period.
Selling and administrative expenses totaled $748.7 million, reflecting an 8.3% increase from the year-ago figure. It represented 27.5% of net sales. Operating income increased 10.1% year over year to $617.9 million. The operating margin was 22.7% compared with 22.4% in the year-ago quarter. Interest expenses decreased 5.7% to $24.2 million.
Cintas’ Balance Sheet & Cash Flow
Exiting the first three months of fiscal 2026, Cintas had cash and cash equivalents of $138.1 million compared with $264 million at the end of fiscal 2025. Long-term debt was about $2.43 billion compared with $2.42 billion at the end of fiscal 2025.
In the first three months of fiscal 2026, it generated net cash of $414.5 million from operating activities, down 10% from the year-ago period. Capital expenditures in the same period totaled $102 million, up 9.7% year over year. Free cash flow decreased 14.9% year over year to $312.5 million.
The company repurchased shares worth $266.1 million compared with $614.8 million in the year-ago period. Dividend payments totaled $157.8 million, up 14.1% year over year.
FY26 Guidance
For fiscal 2026, Cintas expects revenues to be in the range of $11.06-$11.18 billion compared with $11-$11.15 billion anticipated earlier. Earnings per share are estimated to be in the range of $4.74-$4.86 compared with $4.71-$4.85 anticipated earlier.
Cintas predicts net interest expenses of approximately $97 million. This compares with interest expenses of $95 million recorded in fiscal 2025. The effective tax rate is expected to be 20%.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Cintas has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Cintas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.