U.S. stocks lost ground on Wednesday as the earnings season continues and weak data from new-home construction in the U.S., which fell to 1.253 million in June, missed expectations. The Dow Jones Industrial Average declined 0.32% to 27,248, the S&P 500 Index slid 0.52% to 2,988 and the Nasdaq Composite Index dipped 0.35% to 8,194.
Shares of Cintas Corp. (CTAS, Financial) gained more than 9% on Wednesday after announcing fourth-quarter results. The company posted earnings of $2.07 per share on $1.79 billion in revenue, reflecting 7.2% growth from the prior-year quarter. The company beat earnings estimates by 14 cents and revenue expectations by $10 million.
"We are pleased with these fourth-quarter financial results, which conclude a very successful year. For the ninth consecutive year, our organic revenue growth was in the mid- to high- single digits and EPS grew double digits when adjusted for one-time and special items,” CEO Scott D. Farmer said.
The gross margin was $823.6 million, up 9.5% from a year ago. The gross margin as a percentage of revenue was 45.9%, up from 45.1%.
Moreover, the operating income grew 18.4% to $314.4 million. The operating income as a percentage of revenue was 17.5%, up from 15.9% last year.
Looking ahead to fiscal 2020, the company expects revenue between $7.24 billion and $7.31 billion and earnings per share in the range of $8.30 to $8.45.
During the quarter ended March 31, Steven Cohen (Trades, Portfolio) boosted his holding by 802.28% to 93,539. First Eagle Investment (Trades, Portfolio) reduced its position by 1% to 874,865 shares and Ray Dalio trimmed 27.21% off his investment to 8,305 shares.
Gainers
- Hershey Co. (HSY, Financial) +3.76%
- Abbott Laboratories (ABT, Financial) +3.21%
- Conagra Brands Inc. (CAG, Financial) +2.90%
- AES Corp. (AES, Financial) +2.54%
Losers
- CSX Corp. (CSX, Financial) -10.26%
- Textron Inc. (TXT, Financial) -9.32%
- Union Pacific Corp. (UNP) -6.12%
- Kansas City Southern (KSU, Financial) -4.89%
Global markets
The main European stock markets traded lower. The U.K.'s FTSE 100 fell 0.55%, France's CAC 40 slumped 0.76%, Germany's Dax dipped 0.72% and Spain's IBEX 35 dipped 0.99%.
In Asia, Japan's Nikkei 225 lost 0.31%, India’s BSE Sensex climbed 0.22%, Hong Kong's Hang Seng retreated 0.09% and China's Shanghai Composite slid 0.20%.
Disclosure: The author holds no positions in any stocks mentioned.
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
