Cintas Corp. (NASDAQ:CTAS) reported its Q1 results, with EPS of $3.39 coming in better than the Street estimate of $3.11. Revenue was $2.17 billion, beating the Street estimate of $2.08 billion.
The company raised its fiscal 2023 outlook, expecting EPS to be in the range of $12.30-$12.65, compared to the Street estimate of $12.27, and revenue in the range of $8.58-8.67 billion, compared to the Street estimate of $8.5 billion.
Implied top-line growth for the remainder of the year of 8.5% at midpoint suggests upside – notwithstanding tougher comps – given strong and continued business momentum across verticals with strong retention and new business wins.
According to the analysts at RBC Capital, the company's recent investments (particularly in technology) are allowing it to gain a share and win new business. On the margin front, the labor environment is easing ever so slightly and energy costs are rolling over.