11:02 AM EDT, 03/27/2024 (MT Newswires) -- Shares of Cintas ( CTAS ) climbed on Wednesday after the uniform supplier reported stronger-than-expected top- and bottom-line growth for the fiscal third quarter and sweetened its full-year outlook.

Revenue climbed to $2.41 billion for the three months ended Feb. 29 from $2.19 billion a year ago and surpassed the $2.39 billion average analyst estimate on Capital IQ. Uniform rental and facility services revenue rose 9.4% to $1.88 billion.

Earnings per share advanced to $3.84 from $3.14 and beat the Street's view for GAAP EPS of $3.58. Gross margin for the uniform rental and facility services segment increased 170 basis year over year, Chief Financial Officer J. Michael Hansen told analysts on a conference call, according to a Capital IQ transcript.

"Each of our operating segments continue to execute at a high level," driving record high gross and operating margins, Chief Executive Todd Schneider said in a statement. The stock was rallying 9.3% in Wednesday trade.

The uniform company increased its fiscal 2024 revenue guidance to a range of $9.57 billion to $9.60 billion from a prior view of $9.48 billion to $9.56 billion. Six analysts surveyed by Capital IQ were modeling for revenue of $9.56 billion in the ongoing year, according to Capital IQ.

Cintas ( CTAS ) now expects EPS in the $14.80 to $15 range, up from the company's previous guidance of $14.35 to $14.65.

"Our sales team continues to operate at a high level," Schneider told analysts on the call. "We are seeing broad success across the many verticals, particularly within our focus verticals as well as our cross-selling efforts and penetration of new products and services within our existing customers."

Price: 693.94, Change: +60.53, Percent Change: +9.56