Shares of Cintas Corporation (NASDAQ:CTAS) plunged 6.55% in the pre-market session on Thursday, December 19th, despite the company reporting better-than-expected second-quarter earnings results and raising its full-year guidance.
For the fiscal second quarter, Cintas reported earnings per share of $1.09, surpassing analysts' estimates of $1.01. Revenue of $2.56 billion was in line with expectations and increased 7.8% year-over-year. The company's gross margin expanded to 49.8% from 48.0% in the prior-year quarter, driven by lower energy expenses.
Looking ahead, Cintas raised its fiscal 2025 revenue guidance range to $10.255 billion - $10.32 billion from the previous range of $10.22 billion - $10.32 billion. The company also lifted its fiscal 2025 EPS guidance to a range of $4.28 - $4.34, up from the previous range of $4.17 - $4.25. President and CEO Todd M. Schneider highlighted the company's "strong results" and "robust year-over-year revenue and earnings growth, excellent margin expansion and strong cash generation."
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