Corporate uniform marker Cintas (Nasdaq: CTAS) reported strong revenue and earnings growth for the fourth quarter. The results also surpassed the estimates and the company’s stock moved up sharply following the report.
Net profit from continuing operations, adjusted for non-recurring items, moved up to $2.07 per share in the fourth quarter from $1.77 per share a year earlier. Analysts were looking for slower growth.
Reported net income from continuing operations increased to $226.6 million or $2.06 per share from $189.3 million or $1.68 per share in the fourth quarter of 2018.
Supported by strong sales across all the business segments, revenues moved up 7.4% to $1.79 billion during the three-month period and surpassed analysts’ prediction. The Uniform Rental and Facility Services segment registered a 6.8% organic sales growth, while First Aid and Safety Services recorded a 10.7% gain.
Supported by strong sales, revenues moved up 7.4% to $1.79 billion during the three-month period
Scott Farmer, chief executive officer of Cintas, said, “For the ninth consecutive year, our organic revenue growth was in the mid- to high- single digits and EPS grew double digits when adjusted for one-time and special items. Additionally, our strong cash flow and balance sheet enabled us to deploy cash to increase shareholder value.”
The management expects full-year 2020 revenues to be between $7.24 billion and $7.31 billion. Full-year earnings from continuing operations are currently forecast in the range of $8.30 per share to $8.45 per share. The current fiscal year contains one less workday than fiscal 2019, which negatively impacts revenue growth by 40 basis points, according to the company.
Cintas shares have maintained a steady uptrend after hitting a low in the final weeks of last year, gaining about 45% since then. The stock climbed to a record high in early trading Tuesday and ended the session higher.