Cintas Stock Price Declines Despite Q2 Sales and Earnings Increase
Cintas (asi/162167) had a strong showing in the second quarter, with a 7.8% increase in sales year over year. Their total revenue for the quarter reached $2.56 billion, and they saw a 20% rise in net income. Despite these positive numbers, the stock price took a hit following the earnings report.
In the three-month period ending on November 30, Cintas’ net income rose by about 20% to $448.5 million, with second-quarter diluted earnings per share coming in at $1.09, up from $0.90 in the previous year. Operating income also saw a significant 18.4% increase compared to the same period last year.
However, the stock price saw a 13% drop from its high of $210.31 on December 18 to $182.79 at the close of December 19. Investors were likely concerned after Cintas reported a decline in direct sales of its uniforms and the challenges of implementing price increases.
Despite these challenges, Cintas revised its revenue forecast for the year, increasing the minimum projection from $10.22 billion to $10.255 billion. They also raised their earnings-per-share range to $4.28 to $4.34, surpassing the earlier estimate of $4.17 to $4.25. Overall, Cintas remains optimistic about its financial outlook for the year.
