Cintas Corporation (NASDAQ:CTAS) stock fell 4.43% (As on September 26, 11:31:40 AM UTC-4, Source: Google Finance) though the company posted better than expected results for the first quarter of FY 24 and increased the full fiscal year financial guidance. The organic revenue growth rate for the first quarter of fiscal 2024, which adjusts for the impacts of acquisitions and foreign currency exchange rate fluctuations, was also 8.1%. Gross margin for the first quarter of fiscal 2024 was $1.14 billion compared to $1.03 billion in last year’s first quarter, an increase of 11.0%. Gross margin as a percentage of revenue was 48.7% for the first quarter of fiscal 2024 compared to 47.5% in last year’s first quarter, an increase of 120 basis points. Energy expenses comprised of gasoline, natural gas and electricity were 50 basis points lower for the first quarter of fiscal 2024 compared to last year’s first quarter. Operating income for the first quarter of fiscal 2024 increased 13.7% to $500.6 million compared to $440.1 million in last year’s first quarter. Operating income as a percentage of revenue was 21.4% in the first quarter of fiscal 2024 compared to 20.3% in last year’s first quarter. Net income was $385.1 million for the first quarter of fiscal 2024 compared to $351.7 million in last year’s first quarter.

CTAS in the first quarter of FY 24 has reported the adjusted earnings per share of $3.70, beating the analysts’ estimates for the adjusted earnings per share of $3.66. The company had reported the adjusted revenue growth of 8.1 percent to $2.34 billion in the first quarter of FY 24, beating the analysts’ estimates for revenue of $2.33 billion.

Additionally, on September 15, 2023, Cintas paid an aggregate quarterly cash dividend of $138.3 million to shareholders, an increase of 17.8% from the amount paid last September.

Cintas anticipates FY 2024 EPS to be in the range of $14.00-$14.45 versus the analyst consensus of $14.42. Cintas anticipates FY 2024 revenue to be in the range of $9.40B-$9.52B versus the analyst consensus of $9.50B. Fiscal year 2024 interest expense is expected to be approximately $98.0 million compared to $109.5 million in fiscal year 2023, predominately as a result of lower variable rate debt. This may change as a result of future share buybacks or acquisition activity. Fiscal year 2024 effective tax rate is expected to be 21.3% compared to a rate of 20.4% in fiscal year 2023.