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Corporate apparel company Cintas Corporation (NASDAQ:CTAS) shares are trading lower on Thursday after it reported second-quarter earnings.
Quarterly sales of $2.56 billion (+7.8% Y/Y) were in line with the consensus. The company reported EPS of $1.09, beating the analyst consensus of $1.01.
Gross profit for the quarter was $1.28 billion, an increase of 11.8% Y/Y. Gross margin expanded to 49.8% from 48.0%. Energy expenses that comprised gasoline, natural gas, and electricity were 20 basis points lower year-over-year.
Operating cash flow was $908.1 million in the six months ended 2024, compared to $729.6 million in the year-ago period.
Cintas exited the quarter with cash and equivalents worth $122.4 million. Net inventories totaled $394.6 million.
Outlook: Cintas revised FY25 revenue expectations from a range of $10.22 billion – $10.32 billion to $10.255 billion – $10.32 billion versus the $10.29 billion estimate.
Also, Cintas raised its FY25 EPS guidance from $4.17 – $4.25 to a range of $4.28 – $4.34 vs. consensus of $4.24.
Todd M. Schneider, Cintas’ President and Chief Executive Officer, stated, “Cintas delivered strong results in the second quarter, with robust year-over-year revenue and earnings growth, excellent margin expansion and strong cash generation.”
Price Action: CTAS shares are trading lower by 4.3% premarket at $195.61 at the last check Thursday.
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This article Cintas Slips Despite Q2 Earnings Beat And Margin Growth: Details originally appeared on Benzinga.com
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