- Cintas Corporation’s net income jumps to £235.37 million in fiscal Q1.
- The U.S. firm reports £1.37 billion of revenue and £2.18 of EPS.
- Cintas expects revenue between £1.35 billion and £1.37 billion in Q2.
Cintas Corporation (NASDAQ: CTAS) said on Wednesday that its profit in the fiscal first quarter came in stronger than what experts had forecast. The company said that decline in its quarterly revenue was also narrower than expected.
Shares of the company opened about 5% up in the stock market on Wednesday. In the next hour, however, Cintas Corp gave up its entire intraday gain to trade at £254 per share. The stock has recovered more than 100% since it printed a year to date low of £123.25 per share in the last week of March. Learn more about why prices rise and fall in the stock market.
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Cintas Corp’s Q1 financial results versus analysts’ estimates
Cintas Corp said that its net income in the quarter that concluded on 31st August came in at £235.37 million that translates to £2.18 per share. In the comparable quarter of last year, it had posted a lower £196.77 million of net income or £1.82 per share. According to FactSet, analysts had expected the company to record £1.67 of earnings per share in the first quarter.
In terms of revenue, the specialised services provider said that it saw a 3.6% annualised decline to £1.37 billion in Q1. In comparison, experts had anticipated Cintas Corp to register a slightly lower £1.33 billion of revenue in the recent quarter. A report published earlier in September said CEO Scott Farmer of Cintas Corp agreed to a 22% cut on salary in fiscal 2020.
Revenue from uniform rental and facilities services printed at £1.09 billion in the first quarter that was 4.1% lower than last year but topped the FactSet consensus of £1.07 billion. The company refrained from giving a detailed outlook for the full year citing the Coronavirus uncertainty.
Cintas Corp’s guidance for the fiscal second quarter
For the second quarter, it said its revenue was likely to fall in the range of £1.35 billion to £1.37 billion, on £1.57 to £1.73 of earnings per share.
FactSet consensus for Cintas Corp’s Q2 currently stands at £1.37 billion of revenue on £1.62 of earnings per share. In separate news from the United States, General Mills also published a stronger than expected earnings report on Wednesday.
At the time of writing, the Cincinnati-based company that provides specialised services to businesses has a market cap of £26.62 billion and a price to earnings ratio of 39.62.