Cintas Corporation (NASDAQ:CTAS) stock rose 0.32% (As on July 14, 11:49:24 AM UTC-4, Source: Google Finance) after the company beat quarterly profit and revenue expectations, helped by demand for its pricier rental uniforms across segments and easing input costs pressures. The Mason, Ohio-based company had raised product prices in the last few quarters to protect margins from the impact of a tight labor market and higher logistics costs driven by a rise in energy prices. Gross margin for the fourth quarter of fiscal 2023 was $1,088.8 million compared to $946.2 million in last year’s fourth quarter, an increase of 15.1%. Its gross margin as a percentage of revenue rose to 47.7% for the quarter ended May 31, from 45.6% a year earlier. Energy expenses comprised of gasoline, natural gas and electricity were 65 basis points lower for the fourth quarter of fiscal 2023 compared to last year’s fourth quarter. Operating income for the fourth quarter of fiscal 2023 was $470.8 million compared to $404.4 million in last year’s fourth quarter, an increase of 16.4%. Operating income as a percentage of revenue was 20.6% in the fourth quarter of fiscal 2023 compared to 19.5% in last year’s fourth quarter. Net income was $346.2 million for the fourth quarter of fiscal 2023 compared to $294.5 million in last year’s fourth quarter.

CTAS in the fourth quarter of FY 23 has reported the adjusted earnings per share of $3.33, beating the analysts’ estimates for the adjusted earnings per share of $3.19. The company had reported the adjusted revenue growth of 10.1 percent to $2.28 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $2.26 billion,  as per IBES data from Refinitiv. The organic revenue growth rate for the fourth quarter of fiscal 2023, which adjusts for the impacts of acquisitions and foreign currency exchange rate fluctuations, was 10.3%.

The company forecast fiscal 2024 diluted profit per share between $13.85 and $14.35, the mid-point of which is below analysts’ average estimate of $14.29 per share. The annual revenue is expected to be in the range of $9.35 billion to $9.50 billion, while analysts expected revenue of $9.39 billion. Fiscal year 2024 interest expense is expected to be approximately $98.0 million compared to $109.5 million in fiscal year 2023, predominately as a result of lower variable rate debt. This may change as a result of future share buybacks or acquisition activity.