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May 31, 2023
Cintas Q4 2023 Earnings Report
Cintas reported a successful Q4 2023 with double-digit growth in revenue, operating income, and diluted EPS.
Key Takeaways
Cintas Corporation reported a 10.1% increase in revenue for the fourth quarter of fiscal year 2023, reaching $2.28 billion. Diluted earnings per share (EPS) increased by 18.5% to $3.33. The company's full-year revenue reached $8.82 billion, a 12.2% increase, and diluted EPS was $12.99, an 11.5% increase.
Q4 revenue increased by 10.1% to $2.28 billion compared to the previous year.
Organic revenue growth rate for Q4 was 10.3%.
Q4 diluted earnings per share (EPS) increased by 18.5% to $3.33.
Full-year revenue increased by 12.2% to $8.82 billion, and diluted EPS increased by 11.5% to $12.99.
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 2024, Cintas expects revenue to be in the range of $9.35 billion to $9.50 billion and diluted EPS to be in the range of $13.85 to $14.35.
Positive Outlook
- Fiscal year 2024 revenue is expected to be in the range of $9.35 billion to $9.50 billion.
- Fiscal year 2024 diluted EPS is expected to be in the range of $13.85 to $14.35.
- Fiscal year 2024 interest expense is expected to be approximately $98.0 million compared to $109.5 million in fiscal year 2023.
- Guidance includes the impact of having one more workday in fiscal 2024 compared to fiscal 2023.
- Lower variable rate debt
Challenges Ahead
- Fiscal year 2024 effective tax rate is expected to be 21.3% compared to a rate of 20.4% for fiscal 2023.
- The higher effective tax rate negatively impacts fiscal 2024 diluted EPS guidance by about $0.16 and diluted EPS growth by about 120 basis points.
- Guidance does not include any future share buybacks.
- Guidance does not include significant economic disruptions or downturn.
- Future share buybacks or acquisition activity may change the interest expense.
Revenue & Expenses
Visualization of income flow from segment revenue to net income