) is expected to report its third quarter fiscal 2014 results
after the market closes on Mar 19. In the last quarter, it
delivered +1.45% earnings surprise. Let's see how things are
shaping up for this announcement.
Factors to Consider
Cintas continues to deliver organic growth through superior
execution of its operational plans. The company witnessed
top-line growth across all the segments in the last reported
quarter and expects to continue this in the coming quarters as
Cintas's expansion through higher penetration levels and
broadening of customer base including business segments that are
not historically served, augur well for its growth prospects.
However, an increase in raw material costs and challenging
macroeconomic conditions could weigh on the margins going
forward. A continuous increase in raw material costs such as
cotton, due to global headwinds, may weigh on the margins going
forward. Cintas procures raw materials from a wide variety of
domestic and international suppliers, making it susceptible to
market risks which are beyond its control.
Based on these impediments, Cintas has revised its earnings
guidance for fiscal 2014 from its earlier range of $2.70-$2.79
per share to $2.73-$2.79.
There have been no estimate revisions in the last 30 and 60
days. As a result, the Zacks Consensus Estimate for the current
quarter as well as for 2014 has remained unchanged over the same
However, our proven model does not conclusively show that
Cintas will beat earnings this quarter. That is because a stock
needs to have both a positive Earnings ESP and a Zacks Rank #1,
#2 or #3 to be able to beat consensus estimates. That is not the
case here as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference
between the Most Accurate estimate and the Zacks Consensus
Estimate, is 0.00%. This is because both the Most Accurate
Estimate and Zacks Consensus Estimate currently stand at 70
Zacks Rank #3 (Hold): Cintas Corporation's Zacks Rank #3
(Hold) when combined with a 0.00% ESP makes surprise prediction
We caution against stocks with Zacks Ranks #4 and #5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate
Other Stocks to Consider
Here are some companies you may want to consider as our model
shows that they have the right combination of elements to post an
earnings beat in the future.
Ingersoll- Rand plc
) has an Earnings ESP of +0.64 % and a Zacks Rank #3
Honeywell International Inc
) has an Earnings ESP of +0.18% and a Zacks Rank #3 (Hold).
) has an Earnings ESP of +11.1% and a Zacks Rank #2 (Strong
ACXIOM CORP (ACXM): Free Stock Analysis
CINTAS CORP (CTAS): Free Stock Analysis
HONEYWELL INTL (HON): Free Stock Analysis
INGERSOLL RAND (IR): Free Stock Analysis
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