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Market Overview

Earnings Outlook For Cintas

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On Tuesday, December 22, Cintas (NASDAQ:CTAS) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street analysts see Cintas reporting earnings of $2.18 per share on revenue of $1.75 billion. Cintas EPS in the same period a year ago totaled $2.27. Revenue was $1.84 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Tuesday, EPS would have fallen 3.96%. Sales would be down 5.1% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2019
EPS Estimate 2.13 1.21 2.02 2.03
EPS Actual 2.78 1.35 2.16 2.27
Revenue Estimate 1.70 B 1.56 B 1.80 B 1.82 B
Revenue Actual 1.75 B 1.62 B 1.81 B 1.84 B

Stock Performance

Over the last 52-week period, shares are up 29.43%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Cintas is scheduled to hold the call at 10:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings