MASON (dpa-AFX) - Corporate uniform supplier Cintas Corp. (CTAS) said Monday after the markets closed that its fourth quarter profit rose 9.4% from last year, as revenue increased 7.2%.
However, the company's quarterly earnings per share came in below analysts' expectations. At the same time, the company forecast fiscal 2014 earnings below analysts' current consensus estimate, sending its shares down in after hours trading.
Scott Farmer, Cintas' Chief Executive Officer, said, 'While the U.S. economy has shown some signs of improvement in the past several months, much uncertainty remains. This uncertainty, due to a number of factors including the effect of the Affordable Care Act, continues to cause many of our customers to delay hiring and investment decisions. We have developed our fiscal 2014 expectations with this uncertain economic landscape in mind.'
For the fourth quarter ended May 31, 2013, the company reported net income of $86.0 million or $0.69 per share, compared to $78.6 million or $0.60 per share for the year-ago quarter.
On average, 14 analysts polled by Thomson Reuters expected the company to earn $0.70 per share for the fourth quarter.
Total revenue for the fourth quarter rose 7.2% to $1.13 billion from $1.05 billion in the same quarter last year. Thirteen analysts had a consensus revenue estimate of $1.13 billion for the fourth quarter.
Rental uniforms and ancillary products revenue for the quarter grew 4.8% to $785.0 million, while revenue from other services increased 13% to $344.1 million.
For the fiscal year 2014, the company forecasts revenue of $4.5 billion to $4.6 billion and earnings of $2.66 to $2.75 per share. Analysts currently expect the company to earn $2.79 per share on revenue of $4.54 billion for the fiscal year 2014.
Cintas shares, which hit a new 52-week high of $48.17 earlier Monday, closed the day's regular trading session at $47.88, down 12 cents. The shares are currently losing 3.91% in after hours trading.
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