Zacks Investment Research | Dec 20, 2018 08:40PM ET
Cintas Corporation (NASDAQ:CTAS) reported better-than-expected second-quarter fiscal 2019 (ended November 2018) results.
Earnings/Revenues
Quarterly adjusted earnings came in at $1.76 per share, up 34.4% year over year. The bottom line also surpassed the Zacks Consensus Estimate of $1.72.
Revenues in the reported quarter improved 7% year over year to $1,718.2 million. The metric also improved 7% year over year organically. Additionally, the top-line numbers surpassed the Zacks Consensus Estimate of $1,695 million.
Segmental Break-Up
The Uniform Rental and Facility Services segment generated $1,390.8 million revenues in the fiscal second quarter, up 6.3% year over year. The First Aid and Safety Services segment’s top-line performance improved 10.3% year over year to $153.3 million. Aggregate revenues from Other businesses came in at $174.1 million, up 9.3% year over year.
Costs/Margins
Aggregate cost of sales in the fiscal second quarter was $943.1 million, up 6% year over year. Gross profit margin improved 50 basis points (bps) year over year to 45.1% in the fiscal second quarter.
Selling and administrative expenses flared up 5% year over year to $491.7 million in the reported quarter. G&K Services, Inc. (acquired in March 2017) integration expenses tanked 40% year over year to $7.8 million. Operating margin in the reported quarter was 16%, up 140 bps year over year.
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