Cintas Stock Sinks on Drop in Uniform Direct Sales
Key Takeaways
Cintas (
CTAS
) shares tumbled nearly 10% intraday Thursday as the provider of uniforms and other business supplies reported a decline in direct sales of its uniforms and warned about pricing.
In a transcript of the company’s earnings call provided by AlphaSense,
Chief Executive Officer (CEO)
Todd Schneider noted that uniform direct sales are a “strategic business for us that sells into Fortune 1000-type customers, airlines, hotels, casinos, those types. So that business can be quite lumpy.”
Schneider also said that raising prices has been more challenging, and with inflation coming down “it’s very reasonable to think that price increases will come down as well.”
Cintas Q2 Revenue, EPS Topped Estimates
The comments offset strong results from Cintas. The company reported fiscal 2025 second-quarter
earnings per share (EPS)
of $1.09, topping the Visible Alpha consensus, with revenue increasing 7.8% year-over-year to $2.56 billion, matching expectations.
Cintas also raised its full-year EPS outlook to $4.28 to $4.34 from $4.17 to $4.25. It sees revenue between $10.255 billion to $10.320 billion versus the previous outlook of $10.220 billion to $10.320 billion.
Shares of Cintas sank 9.4% to $185.28, their lowest level since August.
Read the original article on
Investopedia
