Cintas Corporation (NASDAQ: CTAS) stock rose 0.012% after the company posted better than expected results for the second quarter of FY 20. The company’s gross margin has increased 10% for the second quarter of fiscal 2020 of $852.4 million. Gross margin as a percent of revenue was 46.2% for the second quarter of fiscal 2020 compared to 45.1% in the second quarter of fiscal ’19. Uniform Rental and Facility Services’ operating segment gross margin as a percentage of revenue expanded 130 basis points from last year’s second quarter to 46.6%, and the First Aid and Safety Services operating segment gross margin expanded 40 basis points to 48.4%. CTAS has reported the Net income from continuing operations of $246.4 million for the second quarter of fiscal 2020 compared to the net income from continuing operations of $243.0 million in the second quarter of fiscal 2019.

CTAS in the second quarter of FY 20 has reported the adjusted earnings per share of $2.27, beating the analysts’ estimates for the adjusted earnings per share of $2.03. The company had reported the adjusted revenue growth of 7.3 percent to $1.84 billion in the second quarter of FY 20, beating the analysts’ estimates for revenue of $1.82 billion. In the second quarter of fiscal 2020, the organic growth rate for the Uniform Rental and Facility Services operating segment was 5.8%, and the organic growth rate for the First Aid and Safety Services operating segment was 10.6%.

Moreover, the company has posted the operating income for the second quarter of fiscal 2020 of $334.5 million, which has increased 21.3% from last year’s second quarter operating income of $275.6 million. Operating income as a percentage of revenue was 18.1% in the second quarter of fiscal 2020 compared to 16% in the second quarter of fiscal 2019. Operating income in the second quarter of fiscal 2019 was affected due to non-recurring integration expenses related to the G&K Services, Inc. (G&K) acquisition of $7.8 million, or 50 basis points.

Additionally, the company has paid an annual dividend of $2.55 per share, an increase of 24.4% over last year’s annual dividend. For fiscal 2020, the company expects the adjusted EPS to be in the range of $8.65 to $8.75. It also expects revenue to be in the range of $7.29 billion and $7.33 billion. Wall Street is expecting the earnings to be  $8.61 per share and revenue to be of $7.31 billion.