Cintas Corp (NASDAQ:CTAS) stock rose 1.62% (As on September 25, 11:23:34 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for the first quarter of FY 25. Gross profit for the first quarter was $1.25 billion compared to $1.14 billion in last year’s first quarter, an increase of 9.7%. Gross margin expanded to 50.1% from 48.7%. Cash flow from operating activities was $466.7 million compared to $336.9 million in the year-ago period, an increase of 38.5%. Cintas exited the quarter with cash and equivalents worth $101.373 million. Net inventories totaled $399.078 million.
CTAS in the first quarter of FY 25 has reported the adjusted earnings per share of $1.10, beating the analysts’ estimates for the adjusted earnings per share of 95 cents. The company had reported the adjusted revenue of $2.5 billion in the first quarter of FY 25, beating the analysts’ estimates for revenue of $2.49 billion. The organic revenue growth rate for the first quarter of fiscal 2025, which adjusts for the impacts of acquisitions, foreign currency exchange rate fluctuations and differences in the number of workdays, was 8.0%. Operating income for the first quarter of fiscal 2025 increased 12.1% to $561.0 million compared to $500.6 million in last year’s first quarter. Operating income as a percentage of revenue was 22.4% in the first quarter of fiscal 2025 compared to 21.4% in last year’s first quarter. Net income was $452.0 million for the first quarter of fiscal 2025 compared to $385.1 million in last year’s first quarter, an increase of 17.4%.
During the first quarter of fiscal 2025, Cintas purchased shares of Cintas common stock for a total purchase price of $473.6 million. Cintas increased its quarterly dividend per share of common stock by 15.6%, which resulted in an aggregate quarterly cash dividend payment on September 3, 2024 of $157.9 million to shareholders.
The company raised the FY25 annual revenue expectations from a range of $10.16 billion to $10.31 billion to a range of $10.22 billion to $10.32 billion versus $10.28 billion estimate. Cintas has raised its FY25 EPS guidance from $4.06 – $4.19 to $4.17 – $4.25 (estimate: $4.17), reflecting the impact of its four-for-one stock split that took effect on September 11.
The company raised fiscal 2025 outlook reflects the continued momentum the company see across the business and the exceptional dedication of the employee-partners in helping the customers meet their image, safety, cleanliness and compliance needs.