How Cintas Stock Rose 60% Last Year
Shares of Cintas (NASDAQ: CTAS) rose 60.2% in 2019, according to data from S&P Global Market Intelligence. The leading provider of corporate uniforms and related services executed this climb the old-fashioned way: by beating Wall Street's earnings estimates in each one of the year's earnings reports.
The earnings beats ranged from a 7% surprise in March's fiscal third-quarter report to a 12% outperformance in the year-ending Q2 update. Revenue rose 7% in the second quarter, while earnings increased 29% compared to the year-ago period. That period reaped the benefit of an unusually large cohort uniform order from an unnamed Fortune 100 customer, but Cintas' business is humming even in quarters without outsize mega-orders. The 2017 buyout of uniform services peer G&K Services unlocked a plethora of cost-saving synergies, which Cintas is using to drive its bottom-line earnings higher.
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Source Fool.com