Cintas (CTAS) to Post Q4 Earnings: Will Cost Woes Mar Results?
Cintas Corporation CTAS is scheduled to report fourth-quarter fiscal 2023 (ended May 31, 2023) earnings numbers on Jul 13, before market open.
The Zacks Consensus Estimate for the company’s fiscal fourth-quarter earnings has been revised upward by a penny in the past 60 days. The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 4.9%.
Let’s see how things have shaped up for Cintas’ fiscal fourth-quarter earnings.
Cintas Corporation Price and EPS Surprise
Cintas Corporation price-eps-surprise | Cintas Corporation Quote
Factors to Note
Cintas’ fiscal fourth-quarter performance is expected to have benefited from strength across its segments. Increased volumes and higher prices are expected to have driven revenues at the Uniform Rental and Facility Services segment. We expect the segment’s revenues to increase 5.8% year over year in the to-be-reported quarter.
The First Aid and Safety Services segment is likely to reflect higher revenues due to growth in the first aid cabinet service business. We expect segmental revenues to climb 4% year over year in the soon-to-be-reported quarter.
Strong growth across the uniform direct sale and fire protection services is expected to have boosted All Other business revenues. We expect All Other revenues to jump 19.9% year over year in the fiscal fourth quarter.
Focus on operational execution, cost-control measures and pricing actions are expected to have supported Cintas’ margin performance.
However, the escalating cost of sales and selling and administrative expenses are likely to have dented CTAS’ bottom line in the fiscal fourth quarter.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Cintas this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below.
Earnings ESP: Cintas has an Earnings ESP of -1.12% as the Most Accurate Estimate is pegged at $3.15, lower than the Zacks Consensus Estimate of $3.19. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Cintas currently carries a Zacks Rank #2.
Highlights of Q3 Earnings
Cintas reported third-quarter fiscal 2023 earnings of $3.14 per share, beating the Zacks Consensus Estimate of $3.01. The bottom line increased year over year despite high costs. Total revenues of $2,190 million outperformed the Zacks Consensus Estimate of $2,145 million. The top line climbed 11.7% year over year due to higher segmental revenues. Organic sales were up 11.8% year over year.
Stocks to Consider
Here are some companies that you may want to consider, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
Neogen Corporation NEOG has an Earnings ESP of +33.33% and a Zacks Rank #2. The company is expected to release fourth-quarter fiscal 2023 results on Jul 25. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Neogen’s fourth-quarter fiscal 2023 earnings has been revised upward by 3 cents in the past 60 days. The stock has gained 26% in the past three months.
AngioDynamics Inc. ANGO has an Earnings ESP of +20.00% and a Zacks Rank #3. The company is scheduled to release fourth-quarter fiscal 2023 results on Jul 12.
The Zacks Consensus Estimate for AngioDynamics’ fourth-quarter fiscal 2023 earnings has remained steady in the past 60 days. The stock has gained 8.4% in the past three months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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