By RTT News,
December 19, 2013, 05:23:00 PM EDT
(RTTNews.com) - Cintas Corp. ( CTAS ) Thursday reported an increase in second-quarter profit, as the uniform supplier's revenues grew and margins strengthened. Cintas' earnings for the quarter trumped Wall Street expectations as did revenues.
Moving ahead, Cintas lifted the lower-end of its earnings outlook for the full year, and also tightened its revenue guidance range.
Cincinnati, Ohio-based Cintas' second-quarter profit rose to $84.9 million or $0.70 per share from $78.0 million or $0.63 per share last year. On average, 16 analysts polled by Thomson Reuters expected earnings of $0.68 per share for the quarter. Analysts' estimates typically exclude special items.
Cintas, which also provides fire protection products, entrance mats and restroom supplies, said revenues for the second quarter grew 7.9 percent to $1.14 billion from $1.06 billion last year. Fourteen analysts had a consensus revenue estimate of $1.13 billion for the quarter.
Rental uniforms and ancillary products, which represents about 70 percent of revenues, grew 6.4 percent year-over-year, while other services revenues rose 11.5 percent.
Second-quarter gross margin improved to 41.7 percent from 40.7 percent last year.
Chief Executive Scott Farmer said, "Our services continue to be valued by our customers, and our new business generation remains very strong. While some signs of economic growth are beginning to appear, our customers continue to be cautious in adding employees or making any significant capital investment in their businesses."
Looking forward to the fiscal year 2014, the company now expect earnings in the range of $2.73 to $2.79 per share, compared to its prior estimate of $2.70 to $2.79 per share. Analysts currently expect earnings of $2.75 per share for the year.
Meanwhile, Cintas tightened its full year revenues outlook to a range of $4.525 billion to $4.575 billion, from its prior estimate of $4.5 billion to $4.6 billion. Analysts currently expect revenues of $4.57 billion.
CTAS closed Thursday's trading at $56.48, up $0.19 or 0.34%, on the Nasdaq. The stock further gained $2.26 or 4.00% in after-hours trade.
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