Cintas (NASDAQ:CTAS) shares fell despite the provider of corporate identity uniforms and other business services reporting first quarter earnings that topped expectations and raising its full-year fiscal 2024 guidance.
Revenue for 1Q rose 8.1% year-over-year from $2.17 billion to $2.34 billion, above the Street expectation of $2.32 billion.
Diluted earnings per share increased 9.1% from $3.39 to $3.70, topping expectations of $3.65, per Zacks Consensus Estimate.
“Our operating segments continue to execute at a high level, leading to robust volume growth and a record high operating margin of 21.4%,” Cintas (NASDAQ:CTAS) CEO Todd Schneider said in a statement.
“These financial results are the product of the exceptional dedication of our employee-partners in helping businesses across North America stay focused on the work that matters most through innovative products and services. I look forward to another successful fiscal year."
For full-year fiscal 2024, the company now expects revenue in the range of $9.4 billion to $9.52 billion, compared to its previous expectation of $9.35 billion to $9.5 billion.
It also increased its diluted earnings per share expectation from a range of $13.85 to $14.35 to a range of $14 to $14.45.
This guidance, however, fell short of Wall Street estimates. Analysts expect earnings per share of $15.83 on revenue of $10.1 billion for fiscal 2024, according to Zacks.
As such, Cintas shares shed 3.8% at US$486 late morning on Tuesday.
Contact the author at emily.jarvie@proactiveinvestors.com
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