NASDAQ$CTAS

Cintas Corp · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Cintas' Q3 2024 results reflected robust revenue growth and record high margins.

Cintas Corporation reported a strong third quarter in fiscal year 2024, with revenue increasing by 9.9% and diluted earnings per share growing by 22.3%. The company achieved record high gross and operating margins, driven by outstanding execution across all operating segments. Based on these results, Cintas is raising its full fiscal year financial guidance for both revenue and diluted EPS.

  • Revenue increased by 9.9% to $2.41 billion compared to the third quarter of fiscal 2023.
  • Diluted earnings per share (EPS) increased by 22.3% to $3.84 compared to $3.14 in the previous year.
  • Gross margin reached a record high of 49.4%, an increase of 220 basis points from the prior year.
  • Operating income increased by 16.6% to $520.8 million, with operating margin at a record high of 21.6%.

Headline financials

Total Revenue

$2.41B

Previous: $2.19B+9.9%
EPS

$3.84

Previous: $0.79+386.1%
Organic Revenue Growth

7.0%

No prior period
Gross Margin

49.4%

No prior period
Operating Margin

21.6%

No prior period
Net Income Margin

16.5%

No prior period
Capital Expenditures

-$308M

Previous: -$224M-37.2%
Free Cash Flow

$90M

Previous: $102M-11.5%
Net Income

$398M

Previous: $326M+22.0%
Operating Income

$521M

Previous: $447M+16.6%
Cash & Equivalents

$128M

Previous: $88.6M+45.1%
Total Assets

$8.98B

Previous: $8.47B+6.1%
Stock-Based Comp

$31.3M

Previous: $23.8M+31.6%

Revenue & EPS history

Cintas · Revenue · Quarterly

$2.41B

Q3 2024+9.9%vs Q3 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Cintas · $2.38B total across 3 segments · Q2 2024

  • Uniform Rental
    $1.85B+8.2%
  • First Aid & Safety
    $266M+12.9%
  • All Other
    $260M+13.7%

Forward guidance

Cintas is raising its annual revenue expectations from a range of $9.48 billion to $9.56 billion to a range of $9.57 billion to $9.60 billion and its diluted EPS from a range of $14.35 to $14.65 to a range of $14.80 to $15.00.

Tailwinds

  • Fiscal year 2024 interest expense is expected to be approximately $99.0 million compared to $109.5 million in fiscal year 2023, predominately as a result of less variable rate debt.
  • Raising annual revenue expectations from a range of $9.48 billion to $9.56 billion to a range of $9.57 billion to $9.60 billion.
  • Raising diluted EPS from a range of $14.35 to $14.65 to a range of $14.80 to $15.00.
  • Each of operating segments continue to execute at a high level.
  • Third quarter results reflect the outstanding dedication and execution of our employees.

Headwinds

  • The forward-looking statements are subject to various risks, uncertainties, potentially inaccurate assumptions and other factors.
  • Possibility of greater than anticipated operating costs including energy and fuel costs.
  • Lower sales volumes.
  • Loss of customers due to outsourcing trends.
  • The performance and costs of integration of acquisitions.

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 2024

Historical avgQ3 2024

+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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