Cintas Corp’s revenue jumps 4.7% in the fiscal second quarter

Cintas Corp. (NASDAQ: CTAS) published its earnings report for the fiscal second quarter on Tuesday that came in better than what analysts had anticipated, despite the ongoing Coronavirus pandemic that has so far infected more than 18 million people in the United States and caused over 327 thousand deaths.

Cintas Corp was reported more than 2% down in premarket trading on Tuesday. The U.S. company, however, regained the entire intraday loss a few hours after the market open. Including the price action, Cintas shares (learn how to buy shares for beginners) are now trading at £260.21 per share versus £202.81 per share at the start of the year. The stock had tumbled to a low £117.63 per share in March.

Cintas Corp’s Q2 financial results versus analysts’ estimates

Cintas said that its net income in the quarter that concluded on 30^th November printed at £213.38 million that translates to £1.96 per share. In the comparable quarter of last year, its net income was capped at a much lower £184.32 million or £1.70 per share.

In terms of total revenue, the business services company reported £1.32 billion that represents a year over year growth of 4.7%. According to FactSet, experts had forecast the company to post a marginally lower £1.31 billion of revenue in the second quarter. Their estimate for per-share earnings stood at £1.63.

At £1.06 billion, revenue from uniform rental and facility services registered an annualised decline of 4.0%. Cintas noted £267.08 million of other revenue in the recent quarter that translates to a 7.3% decline from lasts year.

Cintas Corp refrained from giving future guidance on Tuesday

The Cincinnati-based company said that its gross margin jumped to 46.7% in Q2 versus the year-ago figure of 46.2%. In the prior quarter (Q1), the Nasdaq-listed company had recorded £235.37 million of net income, as per the report published in September.

Cintas Corp refrained from giving its financial guidance for the future on Tuesday due to the uncertainties associated with the ongoing Coronavirus pandemic. In separate news from the United States, aerospace and electronics company, Heico Corp, also published its quarterly financial results earlier this week.

Cintas Corp performed largely upbeat in the stock market last year with an annual gain of close to 60%. At the time of writing, the American company is valued at £27.13 billion and has a price to earnings ratio of 40.46.