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Cintas (CTAS) Up 5.2% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Cintas (CTAS - Free Report) . Shares have added about 5.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cintas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Cintas reported third-quarter fiscal 2026 earnings of $1.24 per share, which beat the Zacks Consensus Estimate of $1.23 by 0.8%. The bottom line increased 8.8% from $1.13 in the year-ago quarter. Revenues of $2.84 billion surpassed the consensus estimate of $2.82 billion by 0.7% and rose 8.9% year over year.
The top line was driven by 8.2% organic revenue growth, reflecting solid demand across its route-based businesses. Record gross margins also stood out as a key highlight in the quarter.
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.
Cintas’ Uniform Rental and Facility Services segment generated revenues of $2.18 billion, up 7.7% year over year from $2.02 billion. Segment operating income rose to $521.0 million from $489.5 million, reflecting steady demand and operating leverage.
The First Aid and Safety Services segment delivered revenues of $346.8 million, increasing 14.9% from $301.8 million in the prior-year quarter. Operating income climbed to $87.3 million from $71.5 million, supported by strong demand for safety and compliance solutions.
Revenues from the All Other segment totaled $317.2 million, up 10.8% from $286.3 million a year ago. Segment operating income increased to $51.5 million from $48.8 million.
Margin Profile
Cintas’ cost of sales (comprising costs related to uniform rental and facility services and others) increased 8% year over year to $1.39 billion. Cintas reported gross profit of $1.45 billion, up 9.8% year over year. Gross margin improved 40 basis points to 51.0%, marking a record high.
Selling and administrative expenses totaled $788.6 million, up from $709.5 million a year ago, reflecting continued investments in the business. Despite this increase, operating income rose 8.2% to $659.9 million.
Operating margin was 23.2%, slightly down from 23.4% in the prior-year quarter due to a $15 million gain recorded last year from asset sales. Net income increased 8.4% to $502.5 million, with a tax rate of 20.6%.
Cintas’ Balance Sheet & Cash Flow
Exiting the first nine months of fiscal 2026, Cintas had cash and cash equivalents of $183.2 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 nine months of fiscal 2026, it generated net cash of $1.57 billion from operating activities, up 2.7% from the year-ago period. Capital expenditures in the same period totaled $299.1 million, up 1.6% year over year.
The company repurchased shares worth $933.2 million compared with $678.1 million in the year-ago period. Dividend payments totaled $520.9 million, up 14.8% year over year.
Cintas Raises FY26 Outlook
Following a strong third-quarter performance, Cintas raised its fiscal 2026 guidance. The company now expects revenues between $11.21 billion and $11.24 billion.
Adjusted earnings per share are projected in the range of $4.86-$4.90. The guidance excludes non-recurring costs associated with the pending UniFirst acquisition.
Management expects net interest expense of approximately $101 million and an effective tax rate of 20.0% for the year. The outlook assumes stable foreign exchange rates and excludes contributions from acquisitions.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
VGM Scores
Currently, Cintas has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Cintas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Cintas belongs to the Zacks Textile - Apparel industry. Another stock from the same industry, G-III Apparel Group (GIII - Free Report) , has gained 17.1% over the past month. More than a month has passed since the company reported results for the quarter ended January 2026.
G-III Apparel reported revenues of $771.49 million in the last reported quarter, representing a year-over-year change of -8.1%. EPS of $0.30 for the same period compares with $1.27 a year ago.
For the current quarter, G-III Apparel is expected to post a loss of $0.30 per share, indicating a change of -257.9% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for G-III Apparel. Also, the stock has a VGM Score of A.
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Cintas (CTAS) Up 5.2% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Cintas (CTAS - Free Report) . Shares have added about 5.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cintas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Cintas' Q3 Earnings Surpass Estimates, Revenues Increase Y/Y
Cintas reported third-quarter fiscal 2026 earnings of $1.24 per share, which beat the Zacks Consensus Estimate of $1.23 by 0.8%. The bottom line increased 8.8% from $1.13 in the year-ago quarter. Revenues of $2.84 billion surpassed the consensus estimate of $2.82 billion by 0.7% and rose 8.9% year over year.
The top line was driven by 8.2% organic revenue growth, reflecting solid demand across its route-based businesses. Record gross margins also stood out as a key highlight in the quarter.
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.
Cintas’ Uniform Rental and Facility Services segment generated revenues of $2.18 billion, up 7.7% year over year from $2.02 billion. Segment operating income rose to $521.0 million from $489.5 million, reflecting steady demand and operating leverage.
The First Aid and Safety Services segment delivered revenues of $346.8 million, increasing 14.9% from $301.8 million in the prior-year quarter. Operating income climbed to $87.3 million from $71.5 million, supported by strong demand for safety and compliance solutions.
Revenues from the All Other segment totaled $317.2 million, up 10.8% from $286.3 million a year ago. Segment operating income increased to $51.5 million from $48.8 million.
Margin Profile
Cintas’ cost of sales (comprising costs related to uniform rental and facility services and others) increased 8% year over year to $1.39 billion. Cintas reported gross profit of $1.45 billion, up 9.8% year over year. Gross margin improved 40 basis points to 51.0%, marking a record high.
Selling and administrative expenses totaled $788.6 million, up from $709.5 million a year ago, reflecting continued investments in the business. Despite this increase, operating income rose 8.2% to $659.9 million.
Operating margin was 23.2%, slightly down from 23.4% in the prior-year quarter due to a $15 million gain recorded last year from asset sales. Net income increased 8.4% to $502.5 million, with a tax rate of 20.6%.
Cintas’ Balance Sheet & Cash Flow
Exiting the first nine months of fiscal 2026, Cintas had cash and cash equivalents of $183.2 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 nine months of fiscal 2026, it generated net cash of $1.57 billion from operating activities, up 2.7% from the year-ago period. Capital expenditures in the same period totaled $299.1 million, up 1.6% year over year.
The company repurchased shares worth $933.2 million compared with $678.1 million in the year-ago period. Dividend payments totaled $520.9 million, up 14.8% year over year.
Cintas Raises FY26 Outlook
Following a strong third-quarter performance, Cintas raised its fiscal 2026 guidance. The company now expects revenues between $11.21 billion and $11.24 billion.
Adjusted earnings per share are projected in the range of $4.86-$4.90. The guidance excludes non-recurring costs associated with the pending UniFirst acquisition.
Management expects net interest expense of approximately $101 million and an effective tax rate of 20.0% for the year. The outlook assumes stable foreign exchange rates and excludes contributions from acquisitions.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
VGM Scores
Currently, Cintas has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Cintas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Cintas belongs to the Zacks Textile - Apparel industry. Another stock from the same industry, G-III Apparel Group (GIII - Free Report) , has gained 17.1% over the past month. More than a month has passed since the company reported results for the quarter ended January 2026.
G-III Apparel reported revenues of $771.49 million in the last reported quarter, representing a year-over-year change of -8.1%. EPS of $0.30 for the same period compares with $1.27 a year ago.
For the current quarter, G-III Apparel is expected to post a loss of $0.30 per share, indicating a change of -257.9% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for G-III Apparel. Also, the stock has a VGM Score of A.