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Cintas Reports Fiscal Q3 Sales, Earnings Increase

The Top 40 distributor is also forecasting sales growth of between 11% and 12% for its still-underway full fiscal year 2023.

Cintas (asi/162167), a Top 40 promotional products distributor, reported an increase in sales and earnings for its fiscal year 2023 third quarter, which concluded February 28.

The Cincinnati, OH-headquartered corporation, best known for its uniform rental and facilities services, said that revenue for the three-month period rose 11.7% to $2.19 billion.

sales charts on laptop

The figure accounts for far more than just promo product business, encompassing total company sales across all products, services and business segments. Cintas did not break out promo-specific sales. In a report, it noted that its uniform/facilities services business had sales of about $1.72 billion in Q3; all other segments added up to a combined $473.8 million.

Third quarter net income tallied $325.8 million, a rise of more than $10 million compared to last year’s Q3. Basic earnings per share were $3.19, up 5% year over year, while diluted EPS was $3.14, a rise of 5.7%.

Meanwhile, quarterly gross margin rose 15% year over year to about $1 billion. Operating income for the third quarter was $446.8 million, an increase of almost 10% compared to the same three-month period the prior year.

“Our operating segments continue to execute at a high level,” said Cintas President/CEO Todd M. Schneider.

Cintas is currently forecasting that its full fiscal year 2023 revenue will fall between $8.74 billion and $8.8 billion – which, if achieved, would constitute annual sales growth of between 11% and 12%. EPS for the year is anticipated to be in the $12.70 to $12.90 range, which would be an increase of between 12.6% and 14.4%, according to the company.

Based on estimated 2021 North American promo product revenue of $177 million, Cintas ranked 14th on Counselor’s most recent list of the largest distributors in the industry.