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Actionable news in CTAS: Cintas Corporation,

Cintas (CTAS) Beats Q4 Earnings, Offers Bullish Outlook

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Business services provider Cintas Corporation

ended fiscal 2016 with a bang, recording solid fourth-quarter results on the back of healthy top-line growth. The company reported fourth-quarter fiscal 2016 (ended May 31, 2016) net income of $118.0 million or $1.08 per share from continuing operations compared with $100.6 million or 86 cents per share in the year-earlier quarter. The reported earnings for the quarter comfortably beat the Zacks Consensus Estimate by 6 cents.

Quarterly revenues increased 11.3% year over year to $1,271.4 million, exceeding the Zacks Consensus Estimate of $1,250 million. Organic growth for the reported quarter improved 6.7% year over year. The superior top-line performance was primarily attributable to the addition of new customers, strong customer retention and higher penetration of existing customers through better and innovative products and services.

For fiscal 2016, Cintas reported net income of $456.9 million or $4.09 per share from continuing operations compared with $410.5 million or $3.46 per share in fiscal 2015. Revenues for fiscal 2016 improved 9.6% year over year to $4,905.5 million.

Gross margin for the reported quarter was 43.6% compared with 42.6% in the prior-year quarter. Operating income in the quarter was $202.9 million, up 14.2% year over year. Operating margin was 16.0%, slightly higher than 15.6% in the year-earlier...


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