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Aug 31, 2022
Cintas Q1 2023 Earnings Report
Reported first quarter fiscal 2023 results with revenue up 14.2% and diluted EPS of $3.39.
Key Takeaways
Cintas Corporation announced its fiscal 2023 first quarter results, with revenue reaching $2.17 billion, a 14.2% increase compared to the previous year. Diluted earnings per share (EPS) was $3.39, up from $3.11 in the previous year. The company is increasing its full fiscal year financial guidance, expecting revenue between $8.58 billion and $8.67 billion and diluted EPS between $12.30 and $12.65.
Revenue for the first quarter of fiscal 2023 was $2.17 billion, an increase of 14.2% compared to last year's first quarter.
Organic revenue growth rate for the first quarter of fiscal 2023 was 13.9%.
First quarter diluted earnings per share (EPS) was $3.39, compared to $3.11 in last year's first quarter.
The company is raising its annual revenue expectations to a range of $8.58 billion to $8.67 billion and diluted EPS to a range of $12.30 to $12.65.
Cintas
Cintas
Cintas Revenue by Segment
Revenue by Segment
Uniform Rental & Facility Revenue
CapyFin.comFirst Aid & Safety Revenue
CapyFin.comAll Other Revenue
CapyFin.com Forward Guidance
Cintas is increasing its full fiscal year financial guidance. The company is raising its annual revenue expectations from a range of $8.47 billion to $8.58 billion to a range of $8.58 billion to $8.67 billion and diluted EPS from a range of $11.90 to $12.30 to a range of $12.30 to $12.65.
Positive Outlook
- Fiscal year 2023 operating income is expected to be in the range of $1.72 billion to $1.76 billion compared to $1.55 billion in fiscal year 2022, adjusted to exclude the gains.
- Our diluted EPS guidance includes no future share buybacks.
- Revenue guidance is between $8.58 billion and $8.67 billion.
- EPS guidance is between $12.30 and $12.65.
- Each of our operating segments grew revenue at a double-digit rate.
Challenges Ahead
- Fiscal year 2023 interest expense is expected to be approximately $110.0 million compared to $88.8 million in fiscal year 2022, due in part to higher interest rates.
- Fiscal year 2023 effective tax rate is expected to be approximately 20.0% compared to a rate of 17.9% in fiscal year 2022.
- The expected higher effective tax rate will negatively impact fiscal year 2023 diluted EPS by approximately $0.32 and diluted EPS growth by approximately 290 basis points.
- We remain in a dynamic environment that can continue to change.
- Our guidance assumes a stable economy and excludes COVID-19 pandemic-related setbacks or economic downturns.
Revenue & Expenses
Visualization of income flow from segment revenue to net income