Loading...
•
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.
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 $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