(Reuters) – Cintas Corp beat quarterly profit and revenue expectations on Thursday, helped by demand for its pricier rental uniforms across segments and easing input costs pressures.
Shares of the company rose 1% in early trading.
The Mason, Ohio-based company had raised product prices in the last few quarters to protect margins from the impact of a tight labor market and higher logistics costs driven by a rise in energy prices.
Its gross margin as a percentage of revenue rose to 47.7% for the quarter ended May 31, from 45.6% a year earlier.
The company’s product offerings that include essentials such as fire protection products and cleaning supplies racked up strong demand from corporations even when still-high inflation continued to constrain their budgets.
Revenue for the fourth quarter grew 10.1% to $2.28 billion, compared with $2.07 billion a year earlier. Analysts on an average expected revenue of $2.26 billion, as per IBES data from Refinitiv.
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Its diluted earnings came in at $3.33 per share, topping analysts’ average estimate of $3.19 for the quarter.
However, the company forecast fiscal 2024 diluted profit per share between $13.85 and $14.35, the mid-point of which is below analysts’ average estimate of $14.29 per share.
The annual revenue is expected to be in the range of $9.35 billion to $9.50 billion, while analysts expected revenue of $9.39 billion.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Shweta Agarwal)