Corporate Apparel Company Cintas' Q1: Bottomline Beat, Inline Revenue, Raised FY24 Outlook & More

Cintas Corporation CTAS reported first-quarter FY24 revenue growth of 8% year-on-year to $2.34 billion, meeting the analyst consensus estimate.

Organic revenue growth rate, which adjusts for the impacts of acquisitions and foreign currency exchange rate fluctuations, was 8.1% for the quarter.

Gross margin expanded by 120 basis points Y/Y to 48.7% in the quarter.

Operating income increased 13.7% to $500.6 million, while the operating margin expanded by 110 basis points to 21.4%.

EPS of $3.70 beat the analyst consensus estimate of $3.67.

The company held $88.1 million in cash and equivalents as of August 31, 2023. Operating cash flow for the quarter totaled $336.9 million.

On September 15, 2023, Cintas paid an aggregate quarterly cash dividend of $138.3 million to shareholders, an increase of 17.8% from the amount paid last September.

Outlook: Cintas raised FY24 revenue outlook from $9.35 billion - $9.50 billion to $9.40 billion - $9.52 billion, against the consensus of $9.50 billion.

The company also raised FY24 EPS outlook from $13.85 - $14.35 to $14.00 - $14.45 versus an estimate of $14.42.

Price Action: CTAS shares are trading lower by 3.61% at $487.27 on the last check Tuesday.