Cintas (NASDAQ:CTAS) Issues FY 2027 Earnings Guidance

Cintas (NASDAQ:CTAS) updated its FY 2027 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 5.450-5.540 for the period, compared to the consensus estimate of 5.490. The company issued revenue guidance of $12.2 billion-$12.3 billion, compared to the consensus revenue estimate of $12.2 billion.

Cintas Stock Performance

Shares of NASDAQ CTAS traded down $1.32 during midday trading on Wednesday, reaching $197.48. The company’s stock had a trading volume of 977,144 shares, compared to its average volume of 2,133,122. Cintas has a 12-month low of $161.16 and a 12-month high of $219.16. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.43 and a quick ratio of 1.27. The firm has a 50 day moving average price of $202.46 and a 200-day moving average price of $185.63. The stock has a market capitalization of $79.13 billion, a P/E ratio of 52.86, a PEG ratio of 3.18 and a beta of 0.91.

Cintas (NASDAQ:CTAS) last posted its earnings results on Wednesday, September 23rd. The business services provider reported $1.39 earnings per share for the quarter, topping the consensus estimate of $1.35 by $0.04. Cintas had a net margin of 17.75% and a return on equity of 42.05%. Cintas’s quarterly revenue was up 10.9% compared to the same quarter last year. During the same period in the prior year, the business earned $1.20 earnings per share. Cintas has set its FY 2027 guidance at 5.450-5.540 EPS. As a group, equities analysts predict that Cintas will post 5.49 earnings per share for the current year.

Cintas Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Friday, August 14th were paid a dividend of $0.52 per share. This represents a $2.08 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date was Friday, August 14th. This is a positive change from Cintas’s previous quarterly dividend of $0.45. Cintas’s dividend payout ratio is presently 55.61%.

Analyst Ratings Changes

A number of research analysts have weighed in on the company. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $206.00 target price on shares of Cintas in a report on Thursday, July 16th. Truist Financial lowered their target price on Cintas from $255.00 to $225.00 and set a “buy” rating for the company in a research note on Monday, June 15th. Sanford C. Bernstein reaffirmed a “market perform” rating on shares of Cintas in a research note on Thursday, September 10th. UBS Group reissued a “buy” rating and issued a $230.00 target price (up from $228.00) on shares of Cintas in a research note on Thursday, July 16th. Finally, Citigroup reiterated a “sell” rating and issued a $180.00 price target (up from $175.00) on shares of Cintas in a research note on Tuesday. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $213.85.

Cintas News Summary

Here are the key news stories impacting Cintas this week:

• Positive Sentiment: Earnings and revenue exceeded expectations. Cintas reported quarterly earnings of $1.39 per share, above the $1.35 analyst consensus and up from $1.20 a year earlier. Revenue increased 10.9% to $3.01 billion, while organic revenue growth reached 8.9%. Cintas Q1 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management raised its fiscal 2027 forecast. Cintas increased its revenue outlook to $12.15 billion-$12.27 billion and adjusted diluted EPS guidance to $5.45-$5.54. Operating income rose 15.2% to $711.9 million, and gross margin expanded to 51.5% from 50.3% a year earlier. Cintas Fiscal 2027 First Quarter Results
• Positive Sentiment: Profitability remained robust. Net income climbed 12.3% to $551.7 million, with a reported net margin of 17.75% and return on equity of 42.05%. The results suggest resilient demand for uniforms, facility services and workplace safety offerings.
• Neutral Sentiment: Institutional positioning was mixed. While 646 institutional investors added CTAS shares in the latest quarter, 842 reduced their positions. Large additions from Invesco, Bank of New York Mellon and JPMorgan were offset by notable selling from Winslow Capital.
• Negative Sentiment: Insider selling may weigh on sentiment. Insiders made three open-market sales and no purchases during the past six months, including sales by Melanie Barstad and Ronald Tysoe totaling more than $3.5 million.
• Negative Sentiment: Expectations are elevated. CTAS trades at a relatively high earnings multiple, leaving less room for disappointment even after the quarterly beat. Investors may also be monitoring $14.4 million of UniFirst transaction expenses and integration-related costs.

About Cintas

Cintas Corporation is a provider of workplace products and services for businesses across North America. The company helps organizations manage employee appearance, workplace cleanliness, safety, and compliance through a range of recurring service programs.

Its offerings include uniform rental and workwear, branded apparel, entrance mats, restroom supplies, and facility cleaning services. Cintas also provides first-aid and safety products, training, and fire protection services, including inspection and maintenance programs for fire extinguishers, sprinkler systems, alarms, and related equipment.

Headquartered in Mason, Ohio, Cintas traces its roots to a family-operated industrial laundry business established by Richard T.