Cintas Beats Q2 Expectations

Cintas Corporation CTAS reported financial results Thursday for its second quarter ended November 30, 2014.

Revenue came in at $1.12 billion, above estimates of $1.11 billion and below the $1.14 billion reported in the year-ago quarter.

Net income for the fiscal 2015 second quarter was $120.4 million, and earnings per diluted share (EPS) for the fiscal 2015 second quarter were $1.00.

Fiscal 2015 second quarter EPS was positively impacted by $0.14 from discontinued operations, which included a gain from the sale of Cintas’ Document Storage and Imaging business.

Adjusted EPS was $0.86, above estimates of $0.78 and the $0.70 reported in the prior year period.

“We are pleased with our second quarter results and remain encouraged by the solid first half of fiscal 2015,” said Scott D. Farmer, Cintas’ Chief Executive Officer. “As was the case in our first quarter, our second quarter organic revenue growth was very good, with Rental operating segment revenue growing organically by 8.1 percent and First Aid, Safety and Fire Protection operating segment revenue growing organically by 12.1 percent.”

Mr. Farmer concluded, “We now expect fiscal 2015 revenue to be in the range of $4.45 billion to $4.50 billion, and fiscal 2015 EPS to be in the range of $3.49 to $3.54. This guidance continues to assume no EPS contribution from the partnership with Shred-it International Inc. due to the expectation of first year integration and transition expenses.”

Analysts had expected fiscal 2015 revenue at $4.46 billion with EPS of $3.15.

Cintas Corporation traded at $77.30 in the after-hours session, up 3.77 percent.