Why Cintas (CTAS) Stock Is Spiking Today
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NEW YORK (TheStreet) -- Shares of Cintas (CTAS) - Get Report are up 9.84% to $107 on heavy trading volume late Wednesday afternoon on better-than-expected fourth quarter results and strong guidance.
After yesterday's market close, the Cincinnati-based uniform provider reported adjusted earnings of $1.08 per share, beating analysts' estimates of $1 per share.
Revenue surged 11.3% year-over-year to $1.27 billion and topped analysts' projections of $1.25 billion.
For the current fiscal year, Cintas anticipates per-share earnings between $4.35 and $4.45 on revenue between $5.15 billion and $5.23 billion.
Analysts surveyed by Thomson Reuters are looking for earnings of $4.30 a share and revenue of $5.18 billion.
About 2.67 million shares of Cintas have been traded so far today, well above its average trading volume of roughly 560,765 shares per day.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of A-.
Cintas' strengths such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and solid stock price performance outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: CTAS
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.