Cintas Raises Full-Year Guidance. The Stock Sinks Anyway.

The corporate uniform supplier met earnings expectations for its fiscal first quarter. (Dreamstime)

Key Points

About This Summary

• Cintas stock declined in premarket trading despite meeting earnings expectations and raising its fiscal-year forecast.
• First-quarter earnings were $1.20 per share, matching estimates, with sales of $2.72 billion, an 8.7% increase year-over-year.
• The company increased its annual revenue guidance to $11.06 billion-$11.18 billion and EPS to $4.74-$4.86.

Cintas stock was falling Wednesday after the corporate uniform supplier met quarterly earnings expectations and lifted its fiscal-year forecast.

Cintas posted earnings of $1.20 a share for its fiscal first quarter, matching analysts’ consensus estimate. Sales totaled $2.72 billion, a tick above Wall Street’s call for $2.7 billion and up 8.7% from last year.

Shares were down 3.7% in premarket trading Wednesday. The stock is up 9.8% this year, as of Tuesday’s close.

As an industrial company with exposure to small and midsize enterprises across the country, Cintas offers a glimpse into Main Street activity in the U.S. economy.

The company raised its annual revenue guidance to $11.06 billion to $11.18 billion from $11 billion to $11.15 billion. Per-share earnings are expected to land between $4.74 and $4.86, up from a previous range of $4.71 to $4.85.

Write to Nate Wolf at nate.wolf@barrons.com