Cintas Corp (CTAS) Gets a Hold Rating from Oppenheimer

By Austin Angelo

Oppenheimer analyst Scott Schneeberger maintained a Hold rating on Cintas Corp (CTASResearch Report) yesterday. The company’s shares closed yesterday at $208.12, close to its 52-week high of $217.34.

Schneeberger said:

“F3Q19 revenue of $1.682B (+5.9% y/y) was uncharacteristically (slightly) below our estimate/consensus of $1.688B/$1.693B, respectively. This was attributed to severe weather and holiday calendar challenges in the quarter. Balanced by solid margins, F3Q19 operational performance was relatively consistent with our estimate. However, a lower than expected tax rate and share repurchases prompted F3Q19 adjusted EPS of $1.84 (+34% y/y; $1.83 reported) to exceeded our estimate/consensus of $1.71/$1.72, respectively. CTAS indicated pacing well toward its FY19 G&K synergies target of $90-$95M/introduced guidance of an incremental $30-$35M in FY20, which implies FY20-end of $120-$130M vs. original guidance of $130-$140M by FY21- end. FY19 adjusted EPS guidance was increased on the F3Q19 outperformance and represents mid-20% growth y/y.”

According to, Schneeberger is a 5-star analyst with an average return of 6.9% and a 61.2% success rate. Schneeberger covers the Services sector, focusing on stocks such as Service Corp International, General Finance, and XPO Logistics.

Cintas Corp has an analyst consensus of Hold, with a price target consensus of $177.50.

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Based on Cintas Corp’s latest earnings release for the quarter ending November 30, the company reported a quarterly net profit of $240 million. In comparison, last year the company had a net profit of $290 million.

Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is negative on the stock. Last month, James J. Johnson, a Director at CTAS sold 6,416 shares for a total of $1,292,824.

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Cintas Corp. engages in the provision and supply of corporate identity uniform programs. It operates through the following segments: Uniform Rental and Facility Services, First Aid and Safety Services, and All Other.