Cintas Corporation (NASDAQ:CTAS) stock fell 0.36% (As on Mar 24, 11:18:28 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for the third quarter of FY 22 and increased the financial guidance. The organic revenue growth rate for the third quarter of fiscal 2022, which adjusts for the impacts of acquisitions, divestitures and foreign currency exchange rate fluctuations, was 10.0%. Gross margin for the third quarter of fiscal 2022 was $898.2 million compared to $809.5 million in last year’s third quarter. Gross margin as a percentage of revenue was 45.8% for the third quarter of fiscal 2022 compared to 45.6% in last year’s third quarter. Energy expenses comprised of gasoline, natural gas and electricity were 45 basis points higher during the third quarter of fiscal 2022 compared to last year’s third quarter. Operating income for the third quarter of fiscal 2022 was $407.6 million compared to $326.5 million in last year’s third quarter. Operating income as a percentage of revenue was 20.8% in the third quarter of fiscal 2022 compared to 18.4% in last year’s third quarter. Net income was $315.4 million for the third quarter of fiscal 2022 compared to $258.4 million in last year’s third quarter.

CTAS in the third quarter of FY 22 has reported the adjusted earnings per share of $2.69, beating the analysts’ estimates for the adjusted earnings per share of $2.47. The company had reported the adjusted revenue growth of 10.3 percent to $1.96 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue of $1.9 billion.

Additionally, fiscal 2022 third quarter net cash provided by operating activities was $393.3 million compared to $331.9 million in last year’s third quarter, an increase of 18.5%. During the third quarter of fiscal 2022 and through March 22, 2022, Cintas purchased $584.2 million of Cintas common stock under its buyback program. On March 15, 2022, Cintas paid shareholders an aggregate of $99.0 million in quarterly dividends.

The company expects the fiscal 2022 fourth quarter revenue to be in the range of $1.96 billion to $2.02 billion and diluted EPS to be in the range of $2.54 to $2.74. The fourth quarter fiscal 2022 effective tax rate is expected to be approximately 23.2% compared to a rate of 19.4% for last year’s fourth quarter.