Cintas Corporation (NASDAQ:CTAS) stock rose 0.84% (As on July 15, 10:57:19 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 22. Net income was $294.5 million for the fourth quarter of fiscal 2022 compared to $267.7 million in last year’s fourth quarter. Gross margin for the fourth quarter of fiscal 2022 was $946.2 million compared to $859.1 million in last year’s fourth quarter, an increase of 10.1%. Gross margin as a percentage of revenue was 45.6% for the fourth quarter of fiscal 2022 compared to 46.8% in last year’s fourth quarter. Operating income for the fourth quarter of fiscal 2022 was $404.4 million compared to $356.4 million in last year’s fourth quarter, an increase of 13.5%. Operating income as a percentage of revenue was 19.5% in the fourth quarter of fiscal 2022 compared to 19.4% in last year’s fourth quarter. The company achieved these great results by productively selling new business, penetrating existing customers with more products and services, providing excellent service, driving operational efficiencies, and obtaining price increases.

CTAS in the fourth quarter of FY 22 has reported the adjusted earnings per share of $2.81, beating the analysts’ estimates for the adjusted earnings per share of $2.69. The company had reported the adjusted revenue growth of 13 percent to $2.07 billion in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $2 billion.

Additionally, fiscal 2022 fourth quarter free cash flow, defined as net cash provided by operating activities less capital expenditures, increased 15.2% compared to fiscal 2021, to $475.7 million. On June 15, 2022, Cintas paid shareholders an aggregate of $98.2 million in quarterly cash dividends. During the fourth quarter of fiscal 2022 and through July 13, 2022, Cintas purchased $496.5 million of Cintas common stock under its buyback program.

Cintas Corp. expects FY2023 EPS of $11.90-$12.30, versus the consensus of $12.24. Cintas Corp. expects FY2023 revenue to be in the range of $8.47-8.58 billion, versus the consensus of $8.33 billion. Fiscal year 2023 operating income is expected to be in the range of $1.68 billion to $1.73 billion, compared to $1.55 billion in fiscal 2022 adjusted to exclude the gains. Fiscal year 2023 interest expense is expected to be approximately $110.0 million, compared to $88.8 million in fiscal year 2022, due in part to higher interest rates.