Cintas’s stock shoots up after big profit beat

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Shares of Cintas Corp. shot up 4.3% in premarket trading Wednesday, after the uniform rentals company reported fiscal first-quarter profit that rose well above expectation and revenue that fell less than forecast. Net income for the quarter to Aug. 31 increased to $300.0 million, or $2.78 a share, from $250.8 million, or $2.32 a share, in the year-ago period. The FactSet consensus for earnings per share was $2.13. Total revenue fell 3.6% to $1.75 billion, above the FactSet consensus of $1.70 billion, as uniform rental and facilities services revenue fell 4.1% to $1.39 billion but topped expectations of $1.36 billion. The company said the COVID-19 pandemic remains a “significant disruption” to its business, and continues to impair visibility into future financial performance. The company isn’t providing a full-year outlook, but said it expects second-quarter EPS of $2.00 to $2.20 and revenue of $1.725 billion to $1.750 billion. The FactSet consensus for second-quarter EPS is $2.06 and for revenue is $1.752 billion. Cintas’s stock has soared 20.4% year to date through Tuesday, while the S&P 500 has gained 2.6%.
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