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May 31, 2022
Cintas Q4 2022 Earnings Report
Cintas' Q4 2022 earnings increased, driven by a strong rise in revenue and effective cost management.
Key Takeaways
Cintas Corporation reported a strong fourth quarter for fiscal year 2022, with revenue reaching $2.07 billion, a 13.0% increase compared to the previous year. Diluted earnings per share (EPS) rose by 13.8% to $2.81. The company's performance was driven by businesses outsourcing to Cintas to help them get Ready for the Workday®.
Revenue for Q4 2022 reached $2.07 billion, a 13.0% increase year-over-year.
Organic revenue growth rate was 12.7% for Q4 2022.
Diluted earnings per share (EPS) for Q4 2022 increased by 13.8% to $2.81.
Free cash flow for Q4 2022 increased 15.2% to $475.7 million.
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
For fiscal year 2023, Cintas expects revenue to be in the range of $8.47 billion to $8.58 billion and diluted EPS to be in the range of $11.90 to $12.30.
Positive Outlook
- Revenue is expected to be in the range of $8.47 billion to $8.58 billion.
- Operating income is expected to be in the range of $1.68 billion to $1.73 billion.
- Diluted EPS is expected to be in the range of $11.90 to $12.30.
- Guidance assumes a stable economy.
- Guidance includes share buybacks through July 13, 2022.
Challenges Ahead
- Fiscal year 2023 interest expense is expected to be approximately $110.0 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 approximately 20.0% compared to a rate of 17.9% in fiscal 2022.
- The expected higher effective tax rate will negatively impact fiscal 2023 diluted EPS by approximately $0.32 and diluted EPS growth by approximately 290 basis points.
- Guidance excludes COVID-19 pandemic-related setbacks or economic downturns.
- Guidance does not include the impact of any future share buybacks.
Revenue & Expenses
Visualization of income flow from segment revenue to net income