Dec 19 (Reuters) - Cintas ( CTAS ) on Thursday raised
its forecast for full-year profit after beating estimates for
second-quarter earnings, driven by lower expenses as well as
steady demand for its products including uniforms rentals and
cleaning supplies.
Cintas ( CTAS ) offers a variety of services and products, such as
uniform cleaning, safety training courses and fire extinguisher
inspections, which it cross-sells that helps boost its revenue.
The company's quarterly revenue benefited from a growth in
U.S. jobs. In November, a rise in unemployment rate to 4.2%
pointed to an easing labor market, according to the Labor
Department.
In the second quarter ended Nov. 30, the company also saw
gross margin increase by 180 basis points to 49.8%, helped by
lower energy expenses including gasoline and natural gas.
Shares of the company, which have risen nearly 36% this
year, were however down 7% in early trading on Thursday as the
company raised only the lower end of its annual sales forecast.
The company now sees annual sales between $10.26 billion and
$10.32 billion, compared with prior expectation of $10.22
billion to $10.32 billion.
It also posted quarterly sales of $2.56 billion that were in
line with estimates.
Cintas ( CTAS ), however, expects full-year earnings per share
between $4.28 and $4.34, compared with a prior range of $4.17 to
$4.25.
The company earned $1.09 per share for the reported quarter,
topping analysts' expectations of $1.01, according to data
compiled by LSEG.