Cintas Corp. (CTAS, Financial) was up 3.56% after hour trading Thursday following results on the second quarter of fiscal 2018.
The business services company beat expectations on earnings and sales.
With an EPS of $1.31, a nearly 16% increase year over year, Cintas topped consensus by 4 cents. The beat produced a positive surprise of 3.15%.
Earnings were backed on sales of $1.61 billion, which represents a 26.8% increase from the same quarter of fiscal 2017.
Cintas also topped consensus on sales by $20 million.
Organic sales grew 7.7% on a year over year basis.
The company reported organic revenue growth rates of 7.3% for the Uniform Rental and Facility Services operating segment and of 10.80% for the First Aid and Safety Services operating segment.
The following two charts give a picture of Cintas' sales over the last six quarters and five years.
Chart 1. Cintas' sales over the last six quarters:
Chart 2. Cintas' sales over the last five fiscal years:
For full fiscal 2018, Cintas Corp. expects 20.2% growth average growth in sales to approximately $6.4 billion. The EPS – before transaction and integration expenses – is expected by the company to range between a low of $5.29 and a high of $5.36 versus a year ago EPS of $4.17 and versus a consensus EPS of $5.37 for full fiscal 2018.
Scott D. Farmer, the chairman and CEO of Cintas, expressed his gratitude to all the company's partners “for steady focus on profitable growth as evidenced by strong organic revenue and earnings per share growth rates.”
Cintas is trading around $159.65 per share and is up-trending. The stock has a market capitalization of $16.97 billion, a price-book (P/B) ratio of 6.61 versus an industry median of 2.43, a price-earnings (P/E) ratio of 31.34 versus an industry average of 22.56 and a price-sales (P/S) ratio of 3.06 versus an industry median of 1.35. The forward PE ratio is 29.76 versus an industry median of 17.67.
In addition, Cintas Corp. has a forward dividend yield of 1.02% versus an industry median of 2.55%.
Disclosure: I have no positions in Cintas Corp.
