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Cintas
🇺🇸 NASDAQ:CTAS
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•
Nov 30, 2022

Cintas Q2 2023 Earnings Report

Cintas' Q2 2023 results showed revenue growth and increased EPS.

Key Takeaways

Cintas Corporation reported a revenue increase of 13.1% to $2.17 billion and diluted EPS of $3.12, a 13.0% increase compared to the previous year's second quarter. The company is raising its full fiscal year revenue and diluted EPS guidance.

Revenue for the second quarter of fiscal 2023 was $2.17 billion, a 13.1% increase year-over-year.

Organic revenue growth rate was 12.8% for the second quarter of fiscal 2023.

Diluted earnings per share (EPS) increased by 13.0% to $3.12.

The company is increasing its full fiscal year financial guidance for revenue and diluted EPS.

Total Revenue
$2.18B
Previous year: $1.92B
+13.2%
EPS
$0.78
Previous year: $0.69
+13.0%
Organic Rev Growth
12.8%
Gross Profit
$1.02B
Previous year: $885M
+15.5%
Cash and Equivalents
$89.8M
Previous year: $113M
-20.7%
Free Cash Flow
$245M
Previous year: $272M
-10.0%
Total Assets
$8.43B
Previous year: $8.02B
+5.1%

Cintas

Cintas

Cintas Revenue by Segment

Forward Guidance

Cintas is raising its annual revenue expectations from a range of $8.58 billion to $8.67 billion to a range of $8.67 billion to $8.75 billion and diluted EPS from a range of $12.30 to $12.65 to a range of $12.50 to $12.80.

Positive Outlook

  • Fiscal year 2023 operating income is expected to be in the range of $1.75 billion to $1.79 billion compared to $1.55 billion in fiscal year 2022, adjusted to exclude the gains.
  • Revenue guidance low end of range $8,670.0 million, growth vs. Fiscal 2022 10.4%.
  • Revenue guidance high end of range $8,750.0 million, growth vs. Fiscal 2022 11.4%.
  • EPS low end of range $12.50, growth vs. Fiscal 2022 10.8%.
  • EPS high end of range $12.80, growth vs. Fiscal 2022 13.5%.

Challenges Ahead

  • Fiscal year 2023 interest expense is expected to be approximately $113.0 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 20.7% compared to a rate of 17.9% in fiscal year 2022, after excluding the gains and their related tax impacts from the reported rate of 17.5%.
  • Our diluted EPS guidance includes no future share buybacks.
  • Guidance assumes a stable economy and excludes COVID-19 pandemic-related setbacks or economic downturns.
  • We remain in a dynamic environment that can continue to change.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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