Cintas (CTAS) Down 4.8% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Cintas (CTAS). Shares have lost about 4.8% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Cintas due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.Cintas' Q1 Earnings Surpass Estimates, Revenues Increase Y/YCintas reported first-quarter fiscal 2026 (ended Aug. 31, 2025) earnings of $1.20 per share, which beat the Zacks Consensus Estimate of $1.19. The bottom line rose 9.1% year over year.Total revenues of $2.72 billion outperformed the consensus estimate of $2.70 billion. The top line rose 8.7% year over year, driven by higher segmental revenues. Organic sales were up 7.8% year over year.Cintas’ Segmental ResultsThe company has two reportable segments, Uniform Rental and Facility Services and First Aid and Safety Services. Other businesses like Uniform Direct Sale and Fire Protection Services are included in All Other. Quarterly sales data is briefly discussed below.Revenues from the Uniform Rental and Facility Services segment (representing 76.9% of the quarter’s net sales) totaled $2.09 billion, up 8.1% year over year.Revenues from the First Aid and Safety Services segment (representing 12.3% of the quarter’s net sales) totaled $334.7 million, up 14.4% year over year.Revenues from All Other business (representing 10.8% of the quarter’s net sales) totaled $292.4 million, up 6.3% year over year.Margin ProfileCintas’ cost of sales (comprising costs related to uniform rental and facility services and others) increased 8.2% year over year to $1.35 billion. It represented 49.7% of net sales. Gross profit increased 9.1% to $1.37 billion. The gross margin was 50.3% compared with 50.1% in the year-ago period.Selling and administrative expenses totaled $748.7 million, reflecting an 8.3% increase from the year-ago figure. It represented 27.5% of net sales. Operating income increased 10.1% year over year to $617.9 million. The operating margin was 22.7% compared with 22.4% in the year-ago quarter. Interest expenses decreased 5.7% to $24.2 million.Cintas’ Balance Sheet & Cash FlowExiting the first three months of fiscal 2026, Cintas had cash and cash equivalents of $138.1 million compared with $264 million at the end of fiscal 2025. Long-term debt was about $2.43 billion compared with $2.42 billion at the end of fiscal 2025. In the first three months of fiscal 2026, it generated net cash of $414.5 million from operating activities, down 10% from the year-ago period. Capital expenditures in the same period totaled $102 million, up 9.7% year over year. Free cash flow decreased 14.9% year over year to $312.5 million.The company repurchased shares worth $266.1 million compared with $614.8 million in the year-ago period. Dividend payments totaled $157.8 million, up 14.1% year over year.FY26 GuidanceFor fiscal 2026, Cintas expects revenues to be in the range of $11.06-$11.18 billion compared with $11-$11.15 billion anticipated earlier. Earnings per share are estimated to be in the range of $4.74-$4.86 compared with $4.71-$4.85 anticipated earlier.Cintas predicts net interest expenses of approximately $97 million. This compares with interest expenses of $95 million recorded in fiscal 2025. The effective tax rate is expected to be 20%.How Have Estimates Been Moving Since Then?Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.VGM ScoresAt this time, Cintas has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.Outlook Cintas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cintas Corporation (CTAS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks