Cintas Corp.’s (CTAS) fiscal second-quarter profit rose 8.8% as the supplier of uniforms and restroom supplies recorded an increase in total revenue, buoyed by a rise in revenue for its uniform-rentals business.
Citing second-quarter results and the U.S. economic climate, Cintas boosted the low end of its per-share earnings estimate for the fiscal year by three cents, and now expects earnings of $2.73 to $2.79 a share. The company’s revenue guidance was essentially the same as its previous forecast.
“While some signs of economic growth are beginning to appear, our customers continue to be cautious in adding employees or making any significant capital investment in their businesses,” said Chief Executive Scott D. Farmer.
The most recent quarter marked a third-consecutive period of earnings growth for Cintas after a profit decline in the company’s fiscal third-quarter marked the first such drop since 2010. For the most part, though, revenue and earnings growth have been hampered by lower prices and economic uncertainty in the U.S.
For the latest period, Cintas reported a profit of $84.9 million, or 70 cents a share, up from $78 million, or 63 cents a share a year earlier.
Revenue rose 7.9% to $1.14 billion. On an organic basis–which excludes acquisitions–revenue rose 7.1%.
Analysts polled by Thomson Reuters recently projected per-share earnings of 68 cents on revenue of $1.13 billion.
The uniform-rental business, the company’s bigger top-line contributor, reported a revenue increase of 6.4%.
