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Cintas Stock Sinks on Drop in Uniform Direct Sales
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Main points
- Shares of Cintas, a supplier of uniforms and other business supplies, plunged Thursday after the company reported a drop in direct sales of its uniforms and warned about pricing.
- Second-quarter revenue and profit beat analysts’ expectations.
- Cintas shares fell to their lowest level since August.
tape (CTASShares of the supplier of uniforms and other business supplies fell nearly 10% intraday Thursday as the company reported a drop in direct sales of its uniforms and warned about pricing.
In the company’s earnings call transcript provided by AlphaSense, Chief Executive Officer (CEO) Todd Schneider noted that Unified Direct Sales is “our strategic business, selling to Fortune 1000 type customers, airlines, hotels, casinos, etc. So the business can be quite volatile.”
Schneider also said raising prices is more challenging, and as inflation falls, “it’s very reasonable to think that rising prices will also fall.”
Cintas second-quarter revenue and EPS beat estimates
The comments offset Cintas’ strong results. Company reports second quarter of fiscal 2025 Earnings per share (EPS) $1.09, above the Visible Alpha consensus, and revenue rose 7.8% year over year to $2.56 billion, in line with expectations.
Cintas also raised its full-year earnings per share forecast to $4.28 to $4.34 from $4.17 to $4.25. Revenue is expected to be between $10.255 billion and $10.320 billion, compared with the previous forecast of $10.220 billion to $10.320 billion.
Cintas shares fell 9.4% to $185.28, their lowest level since August.
trading view
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