Cintas Corp., a major player in the business services sector, recently revised its fiscal 2024 earnings and revenues forecasts upwards following strong third-quarter results that surpassed market estimates.
Following the announcement, the company's shares surged by around 6% in pre-market activity, trading at $670 on the Nasdaq. Based on this improved performance, Cintas is now projecting an earnings per share range of between $14.80 and $15.00 for the year, a significant leap from the previous forecast of $14.35 to $14.65 per share.
In terms of annual revenues, the company now anticipates a range of $9.57 billion to $9.60 billion, surpassing the previous estimate of $9.48 billion to $9.56 billion. Analysts had, on average, expected the company to report earnings of $14.6 per share on revenues of $9.56 billion, according to data collated by Thomson Reuters. This data, however, typically excludes special items.
The upward revision of forecasts came after Cintas reported a notably higher profit in the third quarter, exceeding Street estimates. The company made a profit of $397.58 million, or $3.84 per share, marking a 22.0 percent increase from the previous year's $325.83 million, or $3.14 per share. Analyst predictions had put this figure at $3.58 per share.
Finally, third-quarter revenues enjoyed a 9.9 percent boost, rising to $2.41 billion from the previous year's $2.19 billion. Organic revenue also grew by 7.7 percent.
