Cintas Corp (NASDAQ:CTAS) stock rose 0.90% (As on July 19, 11:08:49 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for the fourth quarter of FY 24. The organic revenue growth rate for the fourth quarter of fiscal 2024, which adjusts for the impacts of acquisitions, foreign currency exchange rate fluctuations and workday differences, was 7.5%. Gross margin for the fourth quarter of fiscal 2024 was $1,215.4 million compared to $1,088.8 million in last year’s fourth quarter, an increase of 11.6%. Gross margin as a percentage of revenue was 49.2% for the fourth quarter of fiscal 2024 compared to 47.7% in last year’s fourth quarter, an increase of 150 basis points. Operating income for the fourth quarter of fiscal 2024 was $547.6 million compared to $470.8 million in last year’s fourth quarter, an increase of 16.3%. Operating income as a percentage of revenue was 22.2% in the fourth quarter of fiscal 2024 compared to 20.6% in last year’s fourth quarter. Net income was $414.3 million for the fourth quarter of fiscal 2024 compared to $346.2 million in last year’s fourth quarter.

CTAS in the fourth quarter of FY 24 has reported the adjusted earnings per share of $3.99, beating the analysts’ estimates for the adjusted earnings per share of $3.80, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 8.2 percent to $2.47 billion in the second quarter of FY 24, fourth the analysts’ estimates for revenue by 0.23%.

Additionally, cash flow from operating activities was $2.08 billion in fiscal 2024 compared to $1.60 billion in fiscal 2023, an increase of 30.2%. Cintas spent $409.5 million on capital expenditures in fiscal 2024, which is 4.3% as a percentage of revenue. Cintas acquired businesses for a total of $186.8 million in fiscal 2024.

In addition, the company has approved a four-for-one split of its common stock. Shareholders of record, as of September 4, 2024, will receive three additional shares for each share held, which will be distributed after market close on September 11, 2024. Cintas anticipates its common stock to begin trading at the split-adjusted price on September 12, 2024.

For fiscal 2025, the revenue is expected to be in the range of $10.16 billion to $10.31 billion and diluted EPS is expected to be in the range of $16.25 to $16.75.