Cintas (CTAS) to Report Q3 Earnings: What's in the Offing?
Cintas Corporation CTAS is scheduled to report third-quarter fiscal 2023 (ended Feb 28, 2023) results on Mar 29 before market open.
The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 6.1%.
Let’s see how things are shaping up for Cintas’ fiscal third quarter.
Cintas Corporation Price and EPS Surprise
Cintas Corporation price-eps-surprise | Cintas Corporation Quote
Factors to Note
Cintas’ fiscal third-quarter performance is expected to have benefited from strength in the Uniform Rental and Facility Services segment due to increased volumes and higher prices. We expect Uniform Rental and Facility Services segment revenues to increase 8.3% year over year in the fiscal third quarter.
Strength across the first aid cabinet service business is likely to have boosted revenues at the First Aid and Safety Services segment. We expect First Aid and Safety Services unit revenues to increase 9.1% year over year in the to-be-reported quarter.
Focus on operational execution, cost-control measures and pricing actions are likely to have supported CTAS’ margin performance.
However, escalating cost of sales due to high energy expenses, as well as rising selling and administrative expenses, might have weighed on Cintas’ bottom-line performance.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Cintas this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Cintas has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $3.01. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Cintas currently carries a Zacks Rank #3.
Highlights of Q2 Earnings
Cintas reported second-quarter fiscal 2023 earnings of $3.12 per share, which beat the Zacks Consensus Estimate of $3.03. The bottom line increased 13% year over year despite high costs. Total revenues of $2,174.9 million also outperformed the Zacks Consensus Estimate of $2,128 million. The top line climbed 14.2% year over year due to higher segmental revenues.
Stocks to Consider
Here are some companies that you may want to consider, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
Darden Restaurants DRI has an Earnings ESP of +1.43% and a Zacks Rank #2. The company is scheduled to report third-quarter fiscal 2023 earnings on Mar 23.
The Zacks Consensus Estimate for Darden Restaurants’ fiscal third-quarter earnings has been revised upward by a penny in the past 60 days.
General Mills GIS has an Earnings ESP of +1.93% and a Zacks Rank #2. The company is slated to release third-quarter fiscal 2023 results on Mar 23.
The Zacks Consensus Estimate for General Mills’ fiscal third-quarter earnings has been revised upward by 2.2% in the past 60 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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General Mills, Inc. (GIS) : Free Stock Analysis Report
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Cintas Corporation (CTAS) : Free Stock Analysis Report
