Cintas Beats Profit Estimates but Sees Uncertainty

Cintas, the uniform and restroom supply company, posts better-than-expected fiscal second-quarter earnings.
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Shares of Cintas  (CTAS) - Get Report fell Tuesday after the uniform and restroom supply company posted better-than-expected fiscal second-quarter earnings but didn't provide an outlook because of pandemic uncertainty.

Shares of the Cincinnati company dropped 3.27% to $334.80 on Tuesday.

Cinta posted earnings of $284.8 million, or $2.62 a share, up 15.7% from $246 million, or $2.35 a share, in the year-ago period.

For the quarter ended Nov. 30, revenue dropped 4.7% to $1.76 billion from $1.84 billion in the same period a year ago.

Analysts surveyed by FactSet expected net income of $2.19 a share, or an adjusted $2.18, on revenue of $1.75 billion.

"The Covid-19 coronavirus pandemic remained a significant disruption to the economy, and the recovery slowed in November as the number of coronavirus cases increased," said Chairman and CEO Scott D. Farmer in a statement.

"However, our employee-partners have not wavered in their passion for getting businesses Ready for the Workday," he added.

Gross margin for the second quarter of fiscal 2021 dropped to $819.9 million from $852.4 million in the same period last year.

The company didn't provide fiscal third-quarter guidance due to the uncertainty caused by the pandemic.

"Despite the near-term uncertainty, I remain confident in the long-term opportunity of Cintas to provide essential, unparalleled image, safety, cleanliness and compliance to a society focused on health, readiness and the outsourcing of non-core activities," Farmer added.

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