Cintas Corporation (NASDAQ:CTAS) Cash Decreases

Cintas Corporation (NASDAQ:CTAS) stock fell 1.18% (As on September 29, 11:40:54 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 23. Revenues from the Uniform Rental and Facility Services segment (representing 78.4% of the reported quarter’s net sales) were $1,697.77 million, increasing 12.6% year over year. Revenues from the First Aid and Safety Services segment (representing 10.8% of the reported quarter’s net sales) totaled $234.16 million, increasing 17.6% year over year. Revenues from the All Other business (representing 10.8% of the reported quarter’s net sales) were $226.25 million, increasing 23.7% year over year. Cintas’ cost of sales (comprising costs related to uniform rental and facility services and others) increased 14.5% year over year to $1,138.34 million. It represented 52.5% of net sales. Gross profit increased 13.9% to $1,028.1 million. The gross margin was 47.5%, down from 47.6% in the year-ago quarter. High energy costs played spoilsports in the quarter. In the fiscal first quarter, CTAS generated net cash of $298.16 million from operating activities, increasing 13.7% from the year-ago period. Capital expenditure totaled $70 million, reflecting a year-over-year increase of 43.6%. Free cash flow increased 6.9% to $228.14 million in the reported quarter. At the end of the fiscal first quarter, Cintas had cash and cash equivalents of $74.56 million, down 17.6% sequentially. Long-term debt was $2,484.60 million, flat sequentially.

CTAS in the first quarter of FY 23 has reported the adjusted earnings per share of $3.39, beating the analysts’ estimates for the adjusted earnings per share of $3.15, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 35.9 percent to $2.17 billion in the first quarter of FY 23, beating the analysts’ estimates for revenue of $2.08 billion.

Cintas improved its fiscal 2023 outlook. The company now expects revenues of $8.58-$8.67 billion in fiscal 2023 compared with $8.47-$8.58 billion anticipated earlier. The Zacks Consensus Estimate for the same stands at $8.52 billion. Earnings are estimated in the range of $12.30-$12.65 per share compared with $11.90-$12.30 expected earlier. The Zacks Consensus Estimate for the same stands at $12.15.

For fiscal 2023, Cintas expects adjusted operating income between $1.72 billion and $1.76 billion ($1.55 billion reported in fiscal 2022). Adjusted effective tax rate in the period is expected to be approximately 20% compared with 17.9% in fiscal year 2022. The company expects this higher tax rate to impact earnings by around 32 cents. Due to higher interest rates, interest expenses are expected to increase to approximately $110 million in fiscal 2023 from $88.8 million in fiscal 2022.

Copyright © 2022. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.