Cintas Corp tops analysts’ estimates for earnings and revenue in Q3
- Cintas Corp tops analysts’ estimates for earnings and revenue in Q3.
- The American company forecasts up to £1.32 billion of revenue in Q4.
- Cintas is currently more than 1% up year to date in the stock market.
Cintas Corp. (NASDAQ: CTAS) published its financial results for the fiscal third quarter on Wednesday that topped analysts’ estimates for earnings and revenue.
Cintas Corp opened at £250.51 per share in the stock market on Wednesday. It had started the year 2021 at a slightly lower £247.19 per share. Learn more about the different types of stock investments.
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Cintas performed fairly upbeat in the stock market last year, with an annual gain of roughly 30%. At the time of writing, it is valued at £26.25 billion and has a price to earnings ratio of 39.07.
Cintas Q3 financial results versus analysts’ estimates
Cintas Corp said that its net income in the third quarter printed at £185.90 million that translates to £1.71 per share. In the comparable quarter of last year, its net income stood at a lower £168.71 million or £1.55 per share.
In separate news on Wednesday, Chinese technology giant Baidu said it expects to raise £2.23 billion from its secondary listing in Hong Kong.
Cintas Corp valued its revenue in Q3 at £1.28 billion versus the year-ago figure of £1.30 billion. Experts, on the other hand, had called for a marginally lower £1.27 billion of revenue in the recent quarter. Their estimate for per-share earnings was capped at a lower £1.59.
The American company said that its gross margin in Q3 stood at 45.6%, compared to a lower 45.5% last year. Cintas repurchased £58.99 million of its common stock in the third quarter. Earlier this week, it paid a quarterly dividend of £57.19 million to its shareholders.
Cintas Corp’s guidance for the fiscal fourth quarter
For the fiscal fourth quarter, Cintas Corp now forecasts its revenue to fall between £1.29 billion and £1.32 billion. In the prior quarter (Q2), the Cincinnati-based company had posted a 4.7% increase in its revenue.
Chief Executive Scott D. Farmer commented on the financial update on Wednesday and said:
“The COVID-19 coronavirus pandemic continues, and it remains a significant disruption to the economy. COVID-19 case counts surged early in our third quarter, and the economy slowed considerably. We were further challenged in the quarter by severe winter weather, which caused extensive energy blackouts in the U.S. Fortunately, after peaking in January, COVID-19 case counts decreased even more quickly than they had increased. Widespread business restrictions were not imposed, and demand for personal protective equipment remained strong, positioning us to exceed our financial expectations.”