Where to Focus When Cintas Reports Earnings
Uniform-rental behemoth Cintas (NASDAQ: CTAS) releases the first earnings report of its new fiscal 2020 year on Sept. 24 after the markets close for trading. The company is coming off a record fiscal year, but to longtime shareholders, this isn't exceptional: Cintas has set revenue and net income records in 48 out of the last 50 years. Below, let's briefly review key areas investors should focus on when the outperforming services company issues its first scorecard of 2020.
Cintas expects slightly slower revenue growth versus the 7.4% year-over-year top-line expansion it chalked up last year. The company's aiming for revenue improvement of 5% to 6.1%, which translates to an annual revenue range of $7.24 billion to $7.31 billion. Last quarter, when issuing this goal, management observed that fiscal 2020 will have one fewer workday than fiscal 2019. On a "constant workday basis," Cintas is actually expecting to advance its revenue in a range of 5.4% to 6.5%.
Turning to the bottom line, the organization booked diluted earnings per share (EPS) of $7.60 in 2019. For the current year, management anticipates that Cintas' earnings will land between $8.30 and $8.45, good for expansion of 9.2%-11.2%.
Source Fool.com
