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Aug 31, 2023
Cintas Q1 2024 Earnings Report
Cintas' first quarter of fiscal year 2024 showed revenue growth and increased profitability.
Key Takeaways
Cintas Corporation reported an 8.1% increase in revenue for the first quarter of fiscal 2024, reaching $2.34 billion. Operating income increased by 13.7% to $500.6 million, and diluted earnings per share (EPS) rose to $3.70 compared to $3.39 in the previous year. The company is raising its full fiscal year financial guidance.
Revenue for the first quarter of fiscal 2024 was $2.34 billion, an 8.1% increase compared to the previous year.
Operating income increased by 13.7% to $500.6 million, representing 21.4% of revenue.
Diluted earnings per share (EPS) for the first quarter of fiscal 2024 was $3.70, up from $3.39 in the previous year.
Cintas is raising its annual revenue expectations to a range of $9.40 billion to $9.52 billion and diluted EPS to a range of $14.00 to $14.45.
Revenue by Segment
Forward Guidance
Cintas is increasing its full fiscal year financial guidance. The company is raising its annual revenue expectations from a range of $9.35 billion to $9.50 billion to a range of $9.40 billion to $9.52 billion and its diluted EPS from a range of $13.85 to $14.35 to a range of $14.00 to $14.45.
Positive Outlook
- 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.
- Guidance includes the impact of having one more workday in fiscal year 2024 compared to fiscal year 2023.
Challenges Ahead
- Fiscal year 2024 effective tax rate is expected to be 21.3% compared to a rate of 20.4% in fiscal year 2023.
- The higher effective tax rate negatively impacts fiscal 2024 diluted EPS guidance by approximately $0.16 and diluted EPS growth by approximately 120 basis points.
- Fiscal year 2024 interest expense may change as a result of future share buybacks or acquisition activity.
- Our diluted EPS guidance includes no future share buybacks.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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