Cintas Corporation Prepares to Reveal Q3 Earnings: Analysts Predict Growth
Expectations for Earnings Report and Historical Performance
Valued at $80.9 billion by market cap, Cintas Corporation (CTAS) stands as a major player in corporate identity and business solutions across North America. Headquartered in Cincinnati, Ohio, the company provides a wide range of products and services, which include uniform rentals, facility services, first aid and safety supplies, and fire protection solutions. On Wednesday, March 26, before trading begins, Cintas will announce its Q3 earnings.
Analysts’ Projections Ahead of Earnings
Analysts anticipate that CTAS will report a projected profit of $1.05 per share, marking a 9.4% increase from $0.96 per share in the same quarter last year. Notably, Cintas has consistently surpassed Wall Street’s earnings expectations over the past four quarters.
In its latest Q2 results, Cintas revealed an adjusted EPS of $1.09, which was 7.9% above consensus estimates, driven by strong revenue growth, strategic pricing, and operational efficiencies.
Future Earnings Outlook
Looking ahead to fiscal 2025, analysts project that CTAS will achieve an EPS of $4.31, reflecting a 13.7% increase from $3.79 in fiscal 2024. Furthermore, for fiscal 2026, EPS is expected to rise by 10.7% year-over-year to $4.77.
Cintas Stock Performance and Market Comparisons
Over the last 52 weeks, Cintas’ shares have surged 34.1%, significantly outperforming the S&P 500 Index’s ($SPX) 24.1% gains and the Industrial Select Sector SPDR Fund’s (XLI) 21.9% return.
Recent Headwinds and Revenue Guidance
It is noteworthy that Cintas’ stock plummeted nearly 11% on December 19 following the release of its Q2 earnings. The company reported a revenue increase of 7.8% to $2.56 billion, matching analyst expectations. Operating income also rose by 18.4% to $591.4 million, up from $499.7 million year-over-year.
In a recent move, Cintas slightly revised its fiscal 2025 revenue guidance, now projecting total revenue between $10.26 billion and $10.32 billion. This indicates an anticipated growth rate of 6.9% to 7.5% compared to fiscal 2024.
Analysts’ Ratings Overview
The consensus among analysts regarding Cintas’ stock is currently cautious, with an overall “Hold” rating. Out of 18 analysts covering the company, six advocate for a “Strong Buy,” nine favor a “Hold,” one suggests a “Moderate Sell,” while two indicate a “Strong Sell” rating. This perspective represents a shift from three months ago when the consensus was a “Moderate Buy.” Currently, CTAS trades above its average price target of $198.57.
On the date of publication, Rashmi Kumari 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.
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