Earnings Preview: Cintas

Cintas (CTAS) is expected to report Q4 earnings after market close Tuesday, July 15,  with a conference call scheduled for 5:00 pm ET.

Guidance

Analysts are looking for EPS of 56c on revenue of $1.02B. The consensus range is 54c to 59c for EPS, and $1B to $1.03B for revenue, according to First Call.

The company gave guidance for FY08 EPS when it reported its Q3 results expecting FY08 EPS of $2.12 to $2.16 vs. consensus of $2.14 and FY09 revenue of $3.93B to $3.965B vs. consensus of $3.95B.

Analyst Views

In April Lehman Brothers downgraded Cintas to Equal Weight from Overweight, citing the company's US economy exposure and increased costs. The firm also lowered its price target to $32 from $35.

Citigroup lowered their estimates to $28 from $32 and reiterate its Sell rating in March, after the company missed expectations in Q3 due to poor margin performance. The firm believed the company's margin headwinds are not easily correctable. However on July 1, Citigroup upgraded the company's shares to Hold from Sell, based on valuation as they see limited downside from current levels. The firm again lowered its price target for Cintas to $27.50 from $28.

Barrington stated on June 24, it believes the company's recent weakness more than discounts current conditions and gives no credit for the company's long-term track record and current business initiatives and maintained its Outperform rating.