Cintas Shares Off 6.6% on Lowered Guidance

Shares of corporate uniform supplier Cintas Corp. shed 6.6% after the company announced it is lowering its full-year revenue and earnings guidance due to pressures on its customer base. Cintas is now forecasting full-year EPS of $2.03-2.08, down from $2.10-2.20. The company is projecting a revenue range of $3.675 billion-3.725 billion against earlier guidance of $3.77 billion-3.85 billion. Wall Street was expecting EPS of $2.16 on revenue of $3.76 billion. Cintas shares fell $2.66 in AH trading after closing up $0.47 at $40.17. Cintas reported a slight rise in fiscal Q3 net income to $76.7 million ($0.48/share) from $76.6 million ($0.45/share) a year earlier. Revenue for the quarter rose 8.2% to $905.4 million from $836.4 million a year ago. Analysts had forecast Q3 EPS of $0.52 on revenue of $925.1 million.

Sources: Press release, MarketWatch, MoneyCentral
Commentary: Cintas: Rising Earnings, Falling Multiple, Flat Stock • Cintas -- Boring Business, Great Stock
Stocks/ETFs to watch: Cintas Corp. (CTAS). Competitors: G&K Services Inc. (GKSR)
Conference call transcripts: Cintas F3Q07 (Qtr End 2/28/07)

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