NASDAQ$CTAS

Cintas Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Cintas reported strong Q3 2023 results driven by double-digit increases in operating income and diluted EPS, excluding the prior year gain and related tax benefit.

Cintas Corporation reported an 11.7% increase in revenue for the third quarter of fiscal 2023, reaching $2.19 billion. Diluted earnings per share (EPS) was $3.14, compared to $2.97 in the previous year. The company is raising its full fiscal year financial guidance for both revenue and diluted EPS.

  • Revenue for Q3 2023 increased by 11.7% to $2.19 billion compared to the previous year.
  • Organic revenue growth rate for Q3 2023 was 11.8%.
  • Diluted earnings per share (EPS) for Q3 2023 was $3.14, up from $2.97 in the previous year.
  • Cintas is raising its full fiscal year financial guidance, expecting revenue to range from $8.74 billion to $8.80 billion and diluted EPS to range from $12.70 to $12.90.

Headline financials

Total Revenue

$2.19B

Previous: $1.96B+11.7%
EPS (adj)

$0.79

Previous: $0.67+17.9%
Capital Expenditures

-$224M

Previous: -$166M-35.1%
Free Cash Flow

$102M

Previous: $150M-32.0%
Net Income

$326M

Previous: $315M+3.3%
Operating Income

$447M

Previous: $408M+9.6%
Gross Profit

$1.03B

Previous: $898M+15.1%
Cash & Equivalents

$88.6M

Previous: $84.1M+5.3%
Total Assets

$8.47B

Previous: $8.17B+3.6%
Stock-Based Comp

$23.8M

Previous: $22.8M+4.4%

Revenue & EPS history

Cintas · Revenue · Quarterly

$2.19B

Q3 2023+11.7%vs Q3 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Cintas · $2.19B total across 3 segments · Q3 2023

  • Uniform Rental
    $1.72B+10.5%
  • All Other
    $242M+24.7%
  • First Aid & Safety
    $232M+8.8%

Forward guidance

Cintas is increasing its full fiscal year financial guidance. The company is raising its annual revenue expectations from a range of $8.67 billion to $8.75 billion to a range of $8.74 billion to $8.80 billion and diluted EPS from a range of $12.50 to $12.80 to a range of $12.70 to $12.90.

Tailwinds

  • Fiscal year 2023 operating income is expected to be in the range of $1.77 billion to $1.80 billion compared to $1.55 billion in fiscal year 2022, adjusted to exclude the fiscal 2022 gains.
  • Our diluted EPS guidance includes no future share buybacks.
  • Total revenue is expected to be between $8,740.0 million and $8,800.0 million.
  • Operating income is expected to be between $1,770.0 million and $1,800.0 million.
  • EPS is expected to be between $12.70 and $12.90.

Headwinds

  • Fiscal year 2023 interest expense is expected to be approximately $112.0 million compared to $88.8 million in fiscal year 2022, due in part to higher interest rates.
  • Fiscal year 2023 effective tax rate is expected to be 20.7% compared to a rate of 17.9% in fiscal year 2022, after excluding the fiscal 2022 gains.
  • We remain in a dynamic environment that can continue to change.
  • Our guidance assumes a stable economy and excludes significant economic disruptions or downturns.
  • The company faces risks related to operating costs, sales volumes, customer loss, integration of acquisitions, inflationary pressures, interest rate volatility, union activities, government regulations, exchange rate fluctuations, environmental compliance, cybersecurity risks, litigation, sourcing costs, and disruptions from catastrophic events including global health pandemics.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.8%

Avg return

Earnings day

+1.8%

Avg return

5 days after

+3.6%

Avg return

30 days after

54%

37 / 68 earnings

Positive

+9.8%

Q4 2017

Best reaction

-8.5%

Q2 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-0.5%+1.2%
Q2 2026+0.7%+1.8%+4.3%
Q1 2026-0.3%+1.7%-4.9%
Q4 2025-1.7%+2.3%+2.1%
Q3 2025+5.8%+6.2%+7.7%
Q2 2025-8.5%-7.8%-3.0%
Q1 2025+1.1%+0.5%+1.2%
Q4 2024+5.4%+5.0%+6.3%
Q3 2024+8.5%+7.4%+5.2%
Q2 2024+7.5%+8.8%+8.2%
Q1 2024-4.8%-4.8%-1.4%
Q4 2023+0.7%+2.2%-0.6%
Q3 2023+5.4%+3.9%+2.7%
Q2 2023+1.9%+3.0%-1.7%
Q1 2023+1.6%+4.5%+11.5%
Q4 2022+2.8%+2.4%+15.0%
Q3 2022+4.4%+7.7%+3.8%
Q2 2022-0.4%+1.2%-13.1%
Q1 2022-1.4%+0.0%+12.2%
Q4 2021+1.9%+2.7%+2.8%
Q3 2021-3.1%-3.3%+0.7%
Q2 2021-1.9%-2.2%-4.2%
Q1 2021-1.7%+3.7%+4.3%
Q4 2020+4.6%+1.5%+10.7%
Q3 2020-1.6%-2.3%+14.7%
Q2 2020+2.0%+4.1%+9.9%
Q1 2020+4.7%+4.5%+6.9%
Q4 2019+7.0%+6.0%+6.9%
Q3 2019-5.2%-2.8%+4.1%
Q2 2019-3.1%-5.5%+12.0%
Q1 2019-4.7%-6.3%-17.7%
Q4 2018+5.7%+7.5%+10.5%
Q3 2018-3.1%-2.1%-0.1%
Q2 2018-1.4%-2.2%+3.1%
Q1 2018+5.2%+5.4%+10.7%
Q4 2017+9.8%+8.9%+5.2%
Q3 2017+1.7%+1.1%-0.5%
Q2 2017-2.6%-2.5%-4.7%
Q1 2017+2.6%-0.5%-6.6%
Q4 2016+9.4%+10.5%+16.6%
Q3 2016-4.3%
Q2 2016+2.9%
Q1 2016+2.1%
Q4 2015-0.6%
Q3 2015-1.5%
Q2 2015+8.8%
Q1 2015+6.5%
Q4 2014+2.0%
Q3 2014+0.6%
Q2 2014+5.4%
Q1 2014-0.1%
Q4 2013-1.9%
Q3 2013-3.5%
Q2 2013-1.9%
Q1 2013-1.5%
Q4 2012-4.7%
Q3 2012-3.1%
Q2 2012+1.9%
Q1 2012+1.5%
Q4 2009-1.7%
Q4 2011-1.7%
Q3 2011-2.1%
Q3 2010-2.1%
Q2 2011+0.3%
Q2 2010+0.3%
Q1 2011+0.6%
Q4 2010+0.6%
Q1 2010+0.6%

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