Cintas Gears Up to Report Q3 Earnings: What's in the Offing?

Cintas Corporation CTAS is scheduled to release third-quarter fiscal 2025 (ended February 2025) results on March 26, before market open.The Zacks Consensus Estimate for earnings has remained steady in the past 60 days. The company has a stellar earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average beat being 7.7%.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Let’s see how things have shaped up before Cintas’ fiscal third-quarter earnings release.Factors to Note Ahead of CTAS’ ResultsStrong growth from new customers and penetration of additional products and services into existing customers are expected to have driven the Uniform Rental and Facility Services segment’s performance. We expect segmental revenues to be $2 billion, implying an increase of 6.9% from the year-ago level.Increasing demand for AED Rentals, eyewash stations and WaterBreak products is likely to have supported the performance of the First Aid and Safety Services segment. We expect this segment’s revenues to be $293.6 million, implying an increase of 11.8% from the year-ago number.Also, synergistic gains from the acquisitions of Paris Uniform Services (March 2024) and SITEX (February 2024) are expected to have boosted revenues. While the Paris Uniform Services buyout has enhanced Cintas’ presence in Pennsylvania, New York, Maryland and West Virginia, the SITEX acquisition has boosted its market position in the U.S. central Midwest region.CTAS is anticipated to have put up a healthy margin performance, supported by its focus on operational execution and pricing actions. We expect the operating margin to improve 70 basis points from the prior-year level.We expect the company’s total revenues to be $2.6 billion for the fiscal third quarter, indicating an increase of 7.6% year over year. Adjusted earnings are expected to be $1.05 per share, indicating an 8.9% increase from the year-ago quarter’s number.However, the company has been witnessing escalating costs of sales and selling, general and administrative (SG&A) expenses, which are likely to weigh on its bottom-line results. For the quarter under review, we anticipate SG&A expenses to rise 7% from the year-earlier level. Also, given the company’s exposure to international markets, foreign currency headwinds are likely to have affected its profitability.Cintas Corporation Price and EPS Surprise Cintas Corporation price-eps-surprise | Cintas Corporation QuoteEarnings WhispersOur proven model does not conclusively predict an earnings beat for CTAS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.Earnings ESP: CTAS has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.05 per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Zacks Rank: CTAS presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.Recent ReleasesTetra Tech, Inc. TTEK reported earnings of 35 cents per share in the first quarter of fiscal 2025 (ended December 2024), which beat the Zacks Consensus Estimate of 34 cents. This compares with earnings of 28 cents per share a year ago.Tetra posted revenues of $1.2 billion for the quarter ended December 2024, surpassing the consensus estimate by 8.85%. This compares with year-ago revenues of $1.02 billion. The company topped the consensus estimate for revenues in each of the last four quarters.Waste Management, Inc. WM reported earnings of $1.70 per share in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $1.79. This compares with earnings of $1.74 per share a year ago.WM reported revenues of $5.89 billion for the quarter ended December 2024, surpassing the consensus estimate by 0.18%. This compares with year-ago revenues of $5.22 billion. The company topped the consensus estimate for revenues two times in the last four quarters.Packaging Corporation of America PKG reported adjusted earnings per share of $2.47 in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $2.51 by a margin of 2%. The bottom line matched PKG’s guidance and grew 16% year over year.Sales in the fourth quarter rose 10.7% year over year to $2.15 billion due to higher volumes and price/mix in both segments. The top line beat the consensus estimate of $2.13 billion.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Cintas Corporation (CTAS): Free Stock Analysis Report Waste Management, Inc. (WM): Free Stock Analysis Report Packaging Corporation of America (PKG): 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