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Feb 28, 2023
Cintas Q3 2023 Earnings Report
Cintas reported strong Q3 2023 results driven by double-digit increases in operating income and diluted EPS, excluding the prior year gain and related tax benefit.
Key Takeaways
Cintas Corporation reported an 11.7% increase in revenue for the third quarter of fiscal 2023, reaching $2.19 billion. Diluted earnings per share (EPS) was $3.14, compared to $2.97 in the previous year. The company is raising its full fiscal year financial guidance for both revenue and diluted EPS.
Revenue for Q3 2023 increased by 11.7% to $2.19 billion compared to the previous year.
Organic revenue growth rate for Q3 2023 was 11.8%.
Diluted earnings per share (EPS) for Q3 2023 was $3.14, up from $2.97 in the previous year.
Cintas is raising its full fiscal year financial guidance, expecting revenue to range from $8.74 billion to $8.80 billion and diluted EPS to range from $12.70 to $12.90.
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 $8.67 billion to $8.75 billion to a range of $8.74 billion to $8.80 billion and diluted EPS from a range of $12.50 to $12.80 to a range of $12.70 to $12.90.
Positive Outlook
- Fiscal year 2023 operating income is expected to be in the range of $1.77 billion to $1.80 billion compared to $1.55 billion in fiscal year 2022, adjusted to exclude the fiscal 2022 gains.
- Our diluted EPS guidance includes no future share buybacks.
- Total revenue is expected to be between $8,740.0 million and $8,800.0 million.
- Operating income is expected to be between $1,770.0 million and $1,800.0 million.
- EPS is expected to be between $12.70 and $12.90.
Challenges Ahead
- Fiscal year 2023 interest expense is expected to be approximately $112.0 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 fiscal 2022 gains.
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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