CTAS - Cintas beats Q3 top and bottom line estimates; raises FY23 outlook

2023-03-29 08:37:32 ET

• Cintas press release ( NASDAQ: CTAS ): Q3 Non-GAAP EPS of $3.14 beats by $0.11 .
• Revenue of $2.19B (+11.7% Y/Y) beats by $40M .
• Gross margin as a percentage of revenue was 47.2% for the third quarter of fiscal 2023 compared to 45.8% in last year's third quarter, an increase of 140 basis points.
• Outlook: "We are increasing our full fiscal year financial guidance. We are raising our annual revenue expectations from a range of $8.67 billion to $8.75 billion to a range of $8.74 billion to $8.80 billion vs. consensus of $8.73B and diluted EPS from a range of $12.50 to $12.80 to a range of $12.70 to $12.90 vs. consensus of $12.74."
• Fiscal year 2023 operating income is expected to be in the range of $1.77 billion to $1.80 billion compared to $1.55 billion in fiscal year 2022, adjusted to exclude the fiscal 2022 gains in the table above.
• Fiscal year 2023 interest expense is expected to be approximately $112.0 million compared to $88.8 million in fiscal year 2022, due in part to higher interest rates.
• Fiscal year 2023 effective tax rate is expected to be 20.7% compared to a rate of 17.9% in fiscal year 2022, after excluding the fiscal 2022 gains in the table above and their related tax impacts from the reported rate of 17.5%.

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