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Cintas
🇺🇸 NASDAQ:CTAS
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•
Nov 30, 2021

Cintas Q2 2022 Earnings Report

Reported a strong revenue increase of 9.4% and increased fiscal year 2022 financial guidance.

Key Takeaways

Cintas Corporation reported a revenue increase of 9.4% for the second quarter of fiscal year 2022, with operating income and diluted EPS excluding last year's gain increasing significantly. The company is raising its annual revenue and diluted EPS expectations for fiscal year 2022.

Revenue for the second quarter of fiscal 2022 was $1.92 billion, an increase of 9.4% compared to last year's second quarter.

Organic revenue growth rate for the second quarter of fiscal 2022 was 9.3%.

Diluted earnings per share (EPS) was $2.76 compared to $2.62 in last year's second quarter.

The company is raising its annual revenue expectations to a range of $7.63 billion to $7.70 billion and diluted EPS to a range of $10.70 to $10.95.

Total Revenue
$1.92B
Previous year: $1.76B
+9.4%
EPS
$0.69
Previous year: $0.66
+4.5%
Gross Profit
$885M
Previous year: $820M
+8.0%
Cash and Equivalents
$113M
Previous year: $703M
-83.9%
Free Cash Flow
$272M
Previous year: $234M
+16.2%
Total Assets
$8.02B
Previous year: $8.45B
-5.2%

Cintas

Cintas

Cintas Revenue by Segment

Forward Guidance

Cintas is increasing its fiscal 2022 financial guidance. The company is raising its annual revenue expectations from a range of $7.58 billion to $7.67 billion to a range of $7.63 billion to $7.70 billion and diluted EPS from a range of $10.60 to $10.90 to a range of $10.70 to $10.95.

Positive Outlook

  • Raising annual revenue expectations to a range of $7.63 billion to $7.70 billion.
  • Raising diluted EPS expectations to a range of $10.70 to $10.95.
  • Strong revenue increase of 9.4% in Q2.
  • Operating income increased significantly.
  • Diluted EPS excluding last year's gain increased significantly.

Challenges Ahead

  • Fiscal 2022 effective tax rate is expected to be approximately 19.0% compared to a rate of 13.7% for fiscal 2021, negatively impacting fiscal 2022 diluted EPS guidance by about $0.72.
  • Guidance does not include the impact of any future share buybacks.
  • Guidance assumes an uneven economic recovery caused by COVID-19.
  • Guidance does not contemplate significant COVID-19 pandemic-related setbacks such as stay-at-home orders.
  • Guidance does not contemplate costs necessary to comply with government COVID-19 mandates.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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