Cintas Corp (NASDAQ:CTAS) stock rose 0.70% (As on March 27, 11:23:46 AM UTC-4, Source: Google Finance) after the company lifted its annual earnings and revenue forecast and reported third-quarter results ahead of analyst expectations. Gross margin for the third quarter of fiscal 2025 was $1.32 billion compared to $1.19 billion in last year’s third quarter, an increase of 11.1%. Gross margin as a percentage of revenue was 50.6% for the third quarter of fiscal 2025 compared to 49.4% in last year’s third quarter, an increase of 120 basis points. Operating income for the third quarter of fiscal 2025 increased 17.1% to $609.9 million compared to $520.8 million in last year’s third quarter. Operating income as a percentage of revenue was 23.4% in the third quarter of fiscal 2025 compared to 21.6% in last year’s third quarter. Operating income for the third quarter of fiscal 2025 benefited from a $15.0 million gain on the sale of property and equipment, while the prior fiscal year third quarter was negatively impacted by a $15.0 million agreement in principle to settle a purported class action contract dispute. Net income was $463.5 million for the third quarter of fiscal 2025 compared to $397.6 million in last year’s third quarter, an increase of 16.6%.

CTAS in the third quarter of FY25 has reported the adjusted earnings per share of $1.13, beating the analysts’ estimates for the adjusted earnings per share of $1.05. The company had reported the adjusted revenue growth of 8.4 percent to $2.61 billion in the third quarter of FY25, beating the analysts’ estimates for revenue of $2.60 billion. The organic revenue growth rate for the third quarter of fiscal 2025, which adjusts for the impacts of acquisitions and foreign currency exchange rate fluctuations, was 7.9%.

For fiscal year 2025, the company raised its earnings guidance to a range of $4.36 to $4.40 per share, from a prior range of $4.28 to $4.34. Analysts had expected $4.33. Revenue is now projected between $10.28 billion and $10.31 billion, compared to a previous range of $10.25 billion to $10.32 billion. The consensus forecast stood at $10.32 billion. The company has raised the low end of the organic growth rate expectations from 7.0% to 7.4%.

Cintas expects net interest expense of approximately $100 million for the year, up from $95 million in fiscal 2024, due primarily to higher variable-rate debt. The effective tax rate is projected at 20.2%.