$CTAS (+0.17%) has raised its annual forecasts with the publication of its quarterly results.

Source: Reuters.com

"Cintas Corp on Wednesday raised its profit and revenue forecasts for the year, betting on robust demand for its products ranging from rental uniforms and cleaning supplies to first-aid and safety kits.

While overall job growth in the U.S. slowed in June (link), hiring continued in sectors such as healthcare and government agencies, according to the Department of Labor's Bureau of Labor Statistics report.

This increase in employment helped boost the company's revenue in the first quarter, as Cintas provides uniform rental services to these sectors.

Cintas forecasts annual revenue in the range of $10.22 billion to $10.32 billion, compared to a previous forecast of $10.16 billion to $10.31 billion.

Cintas expects fiscal 2025 diluted earnings per share to be between $4.17 and $4.25, compared to a previous forecast of $4.06 to $4.19.

Analysts on average expected diluted earnings of $4.17, according to LSEG data.

The company's quarterly revenue rose 6.8 percent year-over-year to $2.50 billion, in line with analysts' estimates.

Revenue in its core segment, uniform rental and facility services, rose 5.9 percent in the quarter ended Aug. 31, compared with 7.6 percent a year ago.

The company posted earnings of 1.10 dollars per share, beating estimates of 95 cents.

Cintas, which offers a variety of services and products, including towels, fire extinguishers and flame-resistant clothing, also benefited from cross-selling opportunities in several categories.

At the same time, lower costs for energy, labor and raw materials such as cotton helped the company increase its gross margin by 140 basis points to 50.1 percent in the first quarter."