G&K Acquisition Hits Cintas Earnings, but Organic Growth Remains Strong
Acquisitions are important events in the lives of companies, and they often involve accepting short-term pain in the hope of long-term gain. Cintas (NASDAQ: CTAS) recently completed the acquisition of G&K Services, complementing its uniform rental business and expanding its exposure to facility services, and investors were looking forward to seeing how the merger would impact the company's financials.
Coming into Thursday's fiscal fourth-quarter financial report, Cintas shareholders expected substantial sales gains and modest earnings growth. The company delivered on the top line, and investors should have been pleased with Cintas' net income despite some one-time charges related to integrating G&K's operations. Let's take a closer look at Cintas to see how it did and what lies ahead.
Image source: Cintas.
Source: Fool.com
Cintas Corp. Stock
Cintas Corp. is currently one of the favorites of our community with 18 Buy predictions and no Sell predictions.
With a target price of 681 € there is a slightly positive potential of 3.4% for Cintas Corp. compared to the current price of 658.6 €.
