Cintas Corporation reported second quarter earnings ended November 30, 2020, for fiscal year 2021, that beat analyst expectations. Cintas shares are up 27% so far this year.
Cintas (CTAS) reported revenue of $1.76 billion, compared to $1.84 billion in the second quarter of last year. Analysts anticipated revenue of $1.75 billion. Earnings per share came in at $2.62, which is 15.4% higher than the same period last year. Analyst expectations for EPS were $2.17.
Operating Income for Q2 increased by 5.5%, compared to last year’s second quarter results, while net income from continuing operations increased by 15.6% compared to the same period last year.
Scott D. Farmer, Cintas’ Chairman and Chief Executive Officer, stated, “I am pleased with our second quarter financial performance. The COVID-19 coronavirus pandemic remained a significant disruption to the economy.”
Despite the difficult trading environment, Cintas managed to increase its annual dividend by 10.2% over last year’s annual dividend and has increased the annual dividend for 37 consecutive years.
Farmer added, “We remain committed to delivering shareholder value, even in this difficult environment.” (See CTAS stock analysis on TipRanks)
Barclays analyst Manav Patnaik reiterated his Buy rating on the stock two weeks ago and raised his price target from $380 to $405. This implies upside potential of around 20% from current levels.
Consensus among analysts is a Moderate Buy based on 4 Buys, 3 Holds and 1 Sell. The average price target of $346 suggests upside potential of just over 2% over the next 12 months.
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