(RTTNews) – Cintas Corp. (CTAS: News ), Tuesday reported a 27.6 percent rise in fourth-quarter profit as demand for rental uniforms and ancillary products lifted revenues by more than 11 percent. Both quarterly earnings as well as revenues beat Street estimates. Looking ahead, the company detailed a vibrant outlook for the ensuing year, which is expected to top estimates. Buoyed by the news, Cintas shares gained about 7 percent in after hours trade on the Nasdaq.
Cintas, which provides uniforms, restroom supplies, and document management services for corporates, reported a fourth-quarter profit of $70.8 million or $0.49 per share, which is higher than $55.5 million or $0.36 per share it earned last year.
Last year’s results included a restructuring item which increased net income by $1.9 million. Excluding this, adjusted earnings for that period totaled $53.6 million or $0.35 per share.
On average, 13 analysts polled by Thomson Reuters expected earnings of $0.44 per share for the quarter. Analysts’ estimates typically exclude special items.
CEO Scott Farmer said, “Our fourth quarter organic growth rate of 8.0 percent represents the fifth straight quarter that our organic growth rate improved. We are pleased by the continued revenue momentum in all of our businesses.”
Revenue for the quarter grew 11.3 percent to $1.012 billion from $909.44 million a year before. Wall Street analysts expected revenues of $967.49 million for the quarter.
Rental uniforms and ancillary products revenues grew 9.9 percent, and other services gained 14.7 percent from last year.
