Cintas Earnings: Business Services Firm Keeps Marching to Its Own Beat

Cintas reported second-quarter results on Dec. 19, with quarterly total and organic sales rising 7.8% and 7.1% year over year, respectively. Its first aid and safety segment had the greatest impact, growing 12.4% from last year and experiencing more than 300 basis points of operating margin expansion. In total, operating income grew more than 18% year over year and earnings per share grew nearly 20%, reflecting Cintas’ strong operating leverage and economies of scale. We’ve raised our fair value estimate to $162 per share from $158 as a result of Cintas’ continued near-term success.