NASDAQ$CTAS

Cintas Corp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Cintas experienced a revenue decrease of 9.7% and an EPS decrease of 34.5% compared to the previous year's fourth quarter.

Cintas Corporation reported a decrease in revenue and EPS for the fourth quarter of fiscal year 2020 due to the COVID-19 pandemic. Revenue decreased by 9.7% to $1.62 billion, and EPS decreased by 34.5% to $1.35. The company's priorities were to keep employees healthy and safe and to serve customers.

  • Fourth quarter revenue was $1.62 billion, a 9.7% decrease year-over-year.
  • EPS from continuing operations was $1.35, a 34.5% decrease year-over-year.
  • Free cash flow totaled $316.0 million, the highest of fiscal 2020.
  • Organic revenue declined 8.4% from last year's fourth quarter.

Headline financials

Total Revenue

$1.62B

Previous: $1.79B-9.7%
EPS (adj)

$0.34

Previous: $0.52-34.6%
Gross Margin

43.7%

Previous: 45.9%-4.8%
Operating Margin

12.8%

Previous: 17.5%-26.9%
Capital Expenditures

$40.9M

Previous: $68.9M-40.6%
Free Cash Flow

$316M

Previous: $328M-3.7%
Net Income

$145M

Previous: $226M-36.1%
Operating Income

$207M

Previous: $314M-34.0%
Gross Profit

$708M

Previous: $824M-14.1%
Cash & Equivalents

$145M

Previous: $96.6M+50.4%
Total Assets

$7.67B

Previous: $7.44B+3.1%
Stock-Based Comp

$19M

Previous: $33.7M-43.5%

Revenue & EPS history

Cintas · Revenue · Quarterly

$1.62B

Q4 2020-9.7%vs Q4 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Cintas · $1.62B total across 3 segments · Q4 2020

  • Uniform Rental
    $1.27B-11.0%
  • First Aid & Safety
    $196M+20.0%
  • All Other
    $152M-24.5%

Forward guidance

Cintas expects first quarter revenue to be in the range of $1.675 billion to $1.700 billion and EPS to be in the range of $2.00 to $2.20.

Tailwinds

  • Expected Q1 revenue between $1.675 billion and $1.700 billion.
  • Expected Q1 EPS between $2.00 and $2.20.
  • Company is confident in managing short-term volatility.
  • Company is focused on long-term objectives.
  • Value proposition resonates more than ever.

Headwinds

  • Visibility to future financial performance remains impaired due to the COVID-19 pandemic.
  • Recent increase in people contracting the virus adds to the uncertainty of the pace of the economic recovery.
  • Government actions in response to the virus add to the uncertainty.
  • The COVID-19 pandemic was a significant disruption to the economy and the company's business in fiscal 2020 fourth quarter.
  • The government-required closure of many businesses had an impact on the company's fiscal 2020 fourth quarter financial results.

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 Q4 2020

Historical avgQ4 2020

+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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