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Nov 30, 2023
Cintas Q2 2024 Earnings Report
Cintas' Q2 2024 results demonstrated strong revenue growth, high operating margin, and diluted EPS growth.
Key Takeaways
Cintas Corporation reported a strong second quarter for fiscal year 2024, with revenue increasing by 9.3% to $2.38 billion and diluted earnings per share rising by 15.7% to $3.61. The company's operating margin was a high 21.0%, and net income reached $374.6 million. Cintas is raising its full fiscal year financial guidance.
Revenue increased by 9.3% compared to the previous year, reaching $2.38 billion.
Diluted earnings per share (EPS) grew by 15.7% to $3.61.
Operating income increased by 12.3% to $499.7 million, representing 21.0% of revenue.
Cintas is raising its annual revenue and diluted EPS expectations for fiscal year 2024.
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 $9.40 billion to $9.52 billion to a range of $9.48 billion to $9.56 billion and its diluted EPS from a range of $14.00 to $14.45 to a range of $14.35 to $14.65.
Positive Outlook
- Fiscal year 2024 interest expense is expected to be approximately $100.0 million compared to $109.5 million in fiscal year 2023, predominately as a result of less 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.
- Our diluted EPS guidance includes no future share buybacks.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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