Cintas Corporation Unveils Financial Performance for the Third Quarter of Fiscal Year 2024

Cintas Corporation (Nasdaq: CTAS) has released its financial outcomes for the third quarter of fiscal year 2024, concluding on February 29, 2024. In comparison to the third quarter of the previous fiscal year, revenue for Q3 of fiscal 2024 rose by 9.9%, reaching $2.41 billion from $2.19 billion. The organic revenue growth rate, adjusting for acquisitions, foreign currency exchange rate fluctuations, and variations in workdays, stood at 7.7%.

Gross margin for the third quarter of fiscal 2024 surged by 14.9% to $1.19 billion from $1.03 billion in the same period last year. As a percentage of revenue, gross margin increased to 49.4% from 47.2%, marking a 220 basis points rise. Energy expenses, including gasoline, natural gas, and electricity, were 40 basis points lower in Q3 of fiscal 2024 compared to the previous year’s third quarter.

Operating income for the third quarter of fiscal 2024 climbed by 16.6% to $520.8 million from $446.8 million in the corresponding period last year. Operating income as a percentage of revenue reached 21.6% in Q3 of fiscal 2024, up from 20.4% in the same period the previous year.

Net income for the third quarter of fiscal 2024 reached $397.6 million, up by 22.0% from $325.8 million in the third quarter of the previous fiscal year. The effective tax rate for Q3 of fiscal 2024 was 19.9%, compared to 22.1% in the same period last year. Third-quarter diluted earnings per share (EPS) for fiscal 2024 reached $3.84, a 22.3% increase from $3.14 in the prior fiscal year’s third quarter.

On March 15, 2024, Cintas distributed a total quarterly cash dividend of $137.6 million to shareholders, reflecting a 17.1% increase from the previous March.

Todd M. Schneider, President and Chief Executive Officer of Cintas, remarked, “Our third-quarter results underscore the exceptional dedication and performance of our employees, whom we consider partners. Each of our operational segments continues to excel, resulting in robust revenue growth of 9.9%, record-high gross margin of 49.4%, record-high operating margin of 21.6%, and a 22.3% increase in diluted EPS.”

Schneider added, “Based on our third-quarter performance, we are revising our full fiscal year financial outlook. We are elevating our annual revenue forecast from a range of $9.48 billion to $9.56 billion to a range of $9.57 billion to $9.60 billion, and our diluted EPS forecast from a range of $14.35 to $14.65 to a range of $14.80 to $15.00.”

He also noted certain guidance specifics:

  • Fiscal year 2024 interest expense is anticipated to be approximately $99.0 million, down from $109.5 million in fiscal year 2023, primarily due to reduced variable rate debt.
  • The expected fiscal year 2024 effective tax rate is 20.6%, compared to 20.4% in fiscal year 2023.
  • The diluted EPS guidance does not include any future share buybacks.

Cintas Corporation assists over one million businesses of various sizes and types in preparing to operate confidently every day by delivering products and services that ensure cleanliness, safety, and aesthetic appeal for their facilities and employees. Headquartered in Cincinnati, Cintas is a publicly traded Fortune 500 company listed on the Nasdaq Global Select Market under the symbol CTAS and is part of both the Standard & Poor’s 500 Index and Nasdaq-100 Index.

A live webcast to discuss the fiscal 2024 third quarter results will be hosted by Cintas today at 10:00 a.m., Eastern Time. The webcast will be accessible to the public on Cintas’ website A replay of the webcast will be available approximately two hours after the live call concludes and will remain accessible for two weeks.

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