Cintas Profit Up 13%

(RTTNews) - Corporate uniform supplier Cintas Corp. (CTAS) said Wednesday after the markets closed that its third quarter profit rose 13% from last year, as revenue increased 5%.

The company's quarterly earnings per share came in line with analysts' expectations as did its quarterly revenue. Based on third quarter results, the company raised the low ends of its full year revenue and earnings outlook ranges.

Scott Farmer, Chief Executive Officer of Cintas, said, "Despite the impact of the severe winter weather which affected our customers and our operations, as well as the weaker Canadian dollar, we were able to grow earnings at a double-digit rate. "

Cintas shares are currently gaining 0.18% in after hours trading after closing the day's regular trading session at $59.59, down 64 cents or 1.06%. The shares trade in a 52-week range of $42.11 to $63.28.

For the third quarter ended February 28, 2014, the Cincinnati, Ohio-based company reported net income of $84.6 million or $0.69 per share, compared to $74.7 million or $0.60 per share for the year-ago quarter.

On average, 15 analysts polled by Thomson Reuters expected the company to earn $0.69 per share for the third quarter.

Revenue for the third quarter rose 5% to $1.13 billion from $1.08 billion in the same quarter last year. Fourteen analysts had a consensus revenue estimate of $1.13 billion for the third quarter.

For the fiscal year 2014, the company now forecasts revenue of $4.550 billion to $4.575 billion and earnings of $2.75 to $2.79 per share. Previously, the company forecast revenue of $4.525 billion to $4.575 billion and earnings of $2.73 to $2.79 per share.

Analysts currently expect the company to earn $2.77 per share on revenue of $4.57 billion for the fiscal year 2014.

Earlier Wednesday, Cintas announced an deal with the shareholders of Shred-it International Inc., under which Cintas and Shred-it will each contribute its document shredding business to a newly formed partnership that will be owned 42% by Cintas and 58% by the shareholders of Shred-it.

The combined entity will operate under the Shred-it brand and is expected to have annual revenue in excess of $600 million.

Apart from the 42% ownership stake in the partnership, Cintas will receive about $180 million in cash at the closing of the deal which is expected to occur before May 31.