Cintas profits rise on strong margins
CINCINNATI — Cintas Corporation''s fiscal third-quarter earnings rose 29 percent as the uniform and business supplies company continued to see strong revenue growth at its uniform rentals business, according to a press release.
For the year, the company again raised its per-share earnings estimate to $2.24 to $2.27 on revenue of $4.09 billion to $4.12 billion, from its December estimate for $2.16 to $2.20 and $4.08 billion to $4.13 billion, the release stated.
According to the release, Cintas has continued to notch double-digit profit increases in recent quarters for the past year thanks to its corporate customers'' continuing demand for apparel and other supplies.
Ahead of the earnings, Barclays Capital analysts had expected that improvement in U.S. employment data in recent months — particularly related to small businesses — should provide a modest benefit to the company''s latest results, the release noted.
Still, sharply lower recycled paper prices — a key driver of margins in its document-management business — remained a drag on revenue growth, as expected, the release added.
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