Cintas Corp: FQ1 Initial: A Strong Cintas Beat and Raise

UBS First Read on Cintas Corp (CTAS.US): CTAS shares could trade slightly higher today after the company delivered a clean beat and raise typical of Cintas quarters. Days-adjusted organic growth reached +8.9%, accelerating from recent quarters in the mid-8% range, with margins also exceeding expectations. Adjusted EPS was $1.39, above consensus of $1.35 and UBSe of $1.38. Revenue was $3.01B, above consensus and UBSe of $2.98B, up +10.9% yoy, with days-adjusted organic revenue of +8.9% (above UBS's +8.0% estimate), the strongest growth in five quarters. Adjusted EBIT was $726m versus consensus of $697m, with a 24.1% margin (up 140bps yoy) and 37% incremental margin. Revenue rose across all segments: Uniform Rental and Facility Services +9.7% yoy, First Aid and Safety +16.1% yoy, and All Other +13.1% yoy. Management raised F2027 revenue guidance to $12.15-12.27B, implying days-adjusted organic growth of +7.4-8.5%, and adjusted EPS to $5.45-$5.54, both in line with typical FQ1 raises. CTA