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Valued at a market cap of $84.1 billion, Cintas Corporation (CTAS) rents and services uniforms and other garments, including flame-resistant clothing, and provides ancillary items and restroom cleaning services and supplies. The Cincinnati, Ohio-based company also offers first aid and safety services, as well as fire protection products and services. It is expected to announce its fiscal Q2 earnings results on Thursday, Dec. 19.
Ahead of this event, analysts project the uniforms and work apparel company to report a profit of $1.01 per share, up 12.2% from $0.90 per share in the year-ago quarter. The company has a solid track record of consistently beating Wall Street's bottom-line estimates in each of the last four quarters. The company’s adjusted earnings of $1.10 per share in the most recent quarter outpaced the consensus estimates by 10% and delivered a notable 18.3% year-over-year increase. The results were primarily driven by robust revenue growth, continued margin expansion, and strong cash generation.
For fiscal 2025, analysts expect CTAS to report an EPS of $4.23, up 11.6% from $3.79 in fiscal 2024. Furthermore, in fiscal 2026, EPS is projected to grow 9.5% year-over-year to $4.63
On a YTD basis, shares of CTAS rallied nearly 38.5%, outpacing both the S&P 500 Index's ($SPX) 22.1% rise and the Industrial Select Sector SPDR Fund’s (XLI) 19.1% return over the same period.
On Sep. 25, shares of CTAS gained nearly 1.2% following its strong Q1 earnings release. Along with surpassing Wall Street’s earnings estimates, the company’s revenue of $2.5 billion met the consensus estimates and rose 6.8% on a yearly basis. The top-line rise can be primarily attributed to growth in revenue across all of its segments. Cintas Corporation’s raised full-year 2025 revenue and EPS guidance might have further bolstered investor confidence.
Analysts' consensus view on Cintas’ stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 18 analysts covering the stock, seven recommend a "Strong Buy," nine suggest a "Hold," and two indicate a “Strong Sell” rating. This configuration is slightly less bullish than three months ago, with eight analysts suggesting a "Strong Buy." As of writing, the stock is trading above its mean price target of $205.91.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
