Cintas Seen Posting Modest Q3 Beat, Possible Guidance Raise Despite Oil Cost Pressure, RBC Says

MT Newswires Live03-19

Cintas (CTAS) could deliver a modest earnings beat in its fiscal Q3 and may raise its full-year outlook despite higher oil prices, RBC Capital analysts said in a Thursday research note to clients.

Given Cintas' track record of consistent execution, RBC said the company could lift its fiscal 2026 guidance by at least the size of any earnings beat, even as elevated oil prices pose cost headwinds.

The RBC analysts said their focus will in that case shift to profitability, forecasting incremental operating margins of about 29%, adjusted operating income of roughly $673 million with margins of 23.8%, above consensus estimates, and adjusted earnings per share of $1.26, slightly ahead of the $1.24 estimate consensus of other analysts.

Cintas' planned acquisition of UniFirst (UNF) could be a longer-term growth driver, with RBC estimating about $375 million in cost synergies over four years, potentially realized ahead of schedule, similar to its integration of G&K Services, the bank's analysts added.

The bank's analysts maintained its sector perform rating on the stock with a price target of $206.

Price: 184.29, Change: -1.15, Percent Change: -0.62

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