Cintas Exceeds Q1 Expectations, Lifts FY22 Guidance

Cintas Corporation (CTAS) delivered solid fiscal first-quarter 2022 results with revenue and earnings both exceeding expectations. Shares jumped as much as 3.4% on the news before closing the day flat at $389.26 on September 29.

Cintas provides a range of products and services to businesses,  including uniforms, mats, mops, cleaning and restroom supplies, first aid and safety products, fire extinguishers and testing, and safety courses. (See Cintas stock charts on TipRanks)

The company reported earnings of $3.11 per share, up 11.9% year-over-year, and significantly outpaced analysts’ estimates of $2.74 per share.

To add to that, revenue climbed 8.6% compared to the year-ago period to $1.90 billion and surpassed the Street’s estimate of $1.87 billion.

Commenting on the results, Todd M. Schneider, Cintas’ President and CEO said, “ I am proud of the execution of our employee-partners. They continue to navigate an unsettled environment by focusing on providing businesses with the products and services needed to help our customers get Ready for the Workday®. I look forward to another successful fiscal year.”

Based on the current economic environment and business momentum, the company raised its Fiscal 2022 financial guidance. The company now forecasts revenue to fall in the range of $7.58 – $7.67 billion, while the consensus estimate is pegged at $7.62 billion.

Additionally, FY22 earnings are projected to be in the range of $10.60 – $10.90 per share compared to consensus estimates of $10.71 per share.

Recently, Morgan Stanley analyst Toni Kaplan lifted the price target on the stock to $368 (5.5% downside potential) from $353 while maintaining a Hold rating.

Overall, the stock has a Moderate Buy consensus rating based on 6 Buys and 3 Holds. The average Cintas price target of $417.57 implies 7.3% upside potential to current levels. Shares have gained 17% over the past year.