CTAS

It has been about a month since the last earnings report for Cintas (CTAS). Shares have added about 13.3% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Cintas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts. Cintas reported first-quarter fiscal 2027 adjusted earnings of $1.39 per share, which beat the Zacks Consensus Estimate of $1.35 by 3.0%. The bottom line increased 15.8% from the year-ago quarter. Revenues of $3.01 billion surpassed the consensus estimate of $2.97 billion by 1.6% and rose 10.9% year over year. The top line benefited from 8.9% organic revenue growth, reflecting growth after adjusting for acquisitions, foreign currency movements and workday differences. Record gross and operating margins were other key highlights in the quarter. The company has two reportable segments, Uniform Rental and Facility Services and First Aid and Safety Services. Other businesses are included in All Other. Quarterly sales data are briefly discussed below. Cintas' Uniform Rental and Facility Services segment generated revenues of $2.29 billion, up 9.7% year over year from $2.09 billion. Segment operating income rose to $575.09 million from $499.94 million. The First Aid and Safety Services segment delivered revenues of $388.52 million, increasing 16.1% from $334.66 million in the prior-year quarter. Operating income climbed to $99.54 million from $80.33 million. Revenues from the All Other segment totaled $330.73 million, up 13.1% from $292.40 million a year ago. Segment operating income increased to $51.67 million from $37.60 million. Cintas' cost of sales totaled $1.46 billion compared with $1.35 billion in the year-ago quarter. Gross margin increased 13.7% to $1.55 billion, while gross margin as a percentage of revenue expanded to 51.5% from 50.3%. Selling and administrative expenses were $827.24 million, up 10.5% year over year. The company also incurred $14.41 million of transaction expenses related to the proposed UniFirst Corporation acquisition. Operating income rose 15.2% to $711.89 million. Operating margin improved to 23.6% from 22.7% in the prior-year quarter. Net income increased 12.3% to $551.71 million, while net income margin was 18.3% compared with 18.1%. The effective tax rate increased to 20.0% from 17.6%. In the first quarter of fiscal 2027, Cintas generated $572.33 million in net cash from operating activities, up from $414.48 million in the year-ago period. Capital expenditures totaled $107.53 million compared with $101.96 million a year earlier. Free cash flow increased to $464.80 million from $312.52 million. Net cash used in investing activities was $117.37 million, reflecting capital expenditures, purchases of investments and business acquisitions. During the quarter, the company repurchased common stock worth $315.71 million and paid $180.70 million in dividends. Net cash used in financing activities totaled $500.17 million. Cintas exited the quarter with cash and cash equivalents of $243.60 million compared with $289.02 million at the end of fiscal 2026. Accounts receivable increased to $1.59 billion from $1.56 billion, while inventories declined to $433.29 million from $446.44 million. Total current assets were $3.93 billion compared with $3.85 billion at May 31, 2026. Long-term debt was $1.43 billion, while debt due within one year totaled $999.29 million. Total shareholders' equity increased to $5.20 billion from $5.14 billion. For fiscal 2027, the company raised its revenue guidance to $12.15-$12.27 billion from the prior projection of $12.10-$12.25 billion. Adjusted diluted earnings per share are now projected in the range of $5.45-$5.54, up from $5.36-$5.50 previously. The guidance excludes expected impacts from the proposed UniFirst acquisition and assumes no future acquisitions and constant foreign exchange rates. Fiscal 2027 also has one more workday than fiscal 2026. Cintas expects net interest expense of approximately $103.00 million compared with $101.20 million in fiscal 2026, with the increase primarily tied to amortization of bridge loan financing expenses related to UniFirst. The company projects an effective tax rate of 20.4% for fiscal 2027. Since the earnings release, investors have witnessed a upward trend in estimates revision. At this time, Cintas has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Cintas has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cintas Corporation (CTAS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Whirlpool Corporation WHR is expected to witness declines in its top and bottom lines when it reports third-quarter 2026 results on Oct. 26. The household appliance company's quarterly revenues are pegged at $3.91 billion, down 3% from the prior-year quarter's figure. The consensus estimate for quarterly earnings has moved downward in the past 30 days to 78 cents per share. However, the consensus mark for earnings indicates a 62.7% fall from the year-ago quarter's figure. Whirlpool delivered a negative earnings surprise of 5% in the last reported quarter. The bottom line has missed estimates by 53.9%, on average, over the trailing four quarters. Whirlpool Corporation price-consensus-eps-surprise-chart | Whirlpool Corporation Quote Whirlpool is likely to have faced continued demand-related challenges in the third quarter of 2026, particularly in the North American major domestic appliances business. The sluggish housing market and weak consumer sentiment may have weighed on appliance purchases, limiting demand for discretionary upgrades and new installations. With industry demand largely driven by replacement purchases rather than housing-related activity, Whirlpool's sales volumes are likely to have remained under pressure. The challenging demand environment may also have constrained the company's ability to generate stronger sales momentum despite ongoing product innovation. The Zacks Consensus Estimate for MDA North America is currently pegged at $2657 million, indicating a decline of 2.4%. Another concern for Whirlpool's third-quarter performance is likely to have been persistent cost inflation and tariff-related pressures. Elevated steel and base metal prices, along with rising resin and fuel costs, may have increased manufacturing and transportation expenses. Although Whirlpool has been implementing pricing actions and cost-saving initiatives to offset these pressures, higher input costs and continued tariff expenses may have limited the benefits. Moreover, several manufacturing footprint optimization initiatives are expected to deliver most of their savings over a longer period, potentially restricting their contribution to third-quarter profitability. Whirlpool's Latin American business is also likely to have encountered challenges from intense promotional competition, particularly in Brazil. Aggressive promotional activity and an unfavorable product mix have been weighing on the region's profitability. Although the company introduced additional pricing actions in Brazil during August, the benefits were expected to build gradually through the quarter, potentially limiting their immediate impact. Meanwhile, consumer preference for lower-priced appliances in North America may have created additional product-mix pressure, as some buyers remained focused on maintaining their spending budgets despite higher appliance prices. Performance across Whirlpool's business segments is likely to have remained mixed in the third quarter, with the Small Domestic Appliances (SDA) business expected to demonstrate greater resilience amid persistent macroeconomic challenges. KitchenAid's strong underlying consumer demand, premium product innovations, expanding direct-to-consumer presence and market-share gains may have supported SDA performance. The expected normalization of retailer inventories following earlier destocking could have provided additional support. Meanwhile, the major appliances business is likely to have remained pressured by sluggish housing activity, subdued consumer sentiment and continued product-mix challenges, as cost-conscious shoppers remained focused on lower-priced options. The Zacks Consensus Estimate for SDA is currently pegged at $322 million, indicating growth of 11.8%. Our proven model doesn't conclusively predict an earnings beat for Whirlpool this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here. Whirlpool currently has an Earnings ESP of -74.5% and a Zacks Rank #5 (Strong Sell). You can uncover the best stocks before they're reported with our Earnings ESP Filter. With a forward 12-month price-to-earnings ratio of 8.49x, which is below the five-year high of 21.11x and below the Household Appliances industry's average of 12.87x, the stock offers compelling value for investors seeking exposure to the sector. Image Source: Zacks Investment Research The recent market movements show that WHR's shares have lost 25.7% in the past three months compared with the industry's 12.5% decline. Image Source: Zacks Investment Research Here are some companies that, according to our model, have the right combination of elements to post an earnings beat: Marriott Vacations Worldwide Corporation VAC has an Earnings ESP of +10.02% and a Zacks Rank of 1 at present. You can see the complete list of today's Zacks #1 Rank stocks here. Marriott Vacations is expected to register a 45% increase in earnings for the to-be-reported quarter. VAC reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 1.3%. V.F. Corporation VFC currently has an Earnings ESP of +5.52% and a Zacks Rank of 3. VFC is likely to register top-line growth when it reports second-quarter fiscal 2027 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.7 billion, indicating a 3.9% decline from the figure reported in the year-ago quarter. The consensus estimate for VFC's earnings has remained stable at 51 cents per share in the past 30 days. The consensus estimate indicates a decline of 1.9% from the year-ago quarter's actual. VFC has a trailing four-quarter earnings surprise of 33.9%, on average. Cintas Corporation CTAS currently has an Earnings ESP of +0.24% and a Zacks Rank of 2. CTAS is likely to register growth in its bottom and top lines when it reports second-quarter fiscal 2027 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3 billion, indicating 7.9% growth from the figure reported in the year-ago quarter. The consensus estimate for CTAS' first-quarter earnings is pegged at $1.36 a share, implying a 12.4% increase from the year-earlier quarter. The consensus mark has been stable in the past seven days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Whirlpool Corporation (WHR) : Free Stock Analysis Report V.F. Corporation (VFC) : Free Stock Analysis Report Cintas Corporation (CTAS) : Free Stock Analysis Report Marriott Vacations Worldwide Corporation (VAC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Cintas Corporation (NASDAQ:CTAS) delivered the kind of quarter that should strengthen the standalone growth story, but the stock's premium valuation leaves less room for execution to slip. Revenue reached a record $3.01 billion, up 10.9%, while organic growth accelerated to 8.9%, adjusted EPS rose 15.8% to $1.39, and adjusted operating margin reached 23.6%. Cintas also raised fiscal 2027 revenue guidance to $12.15 billion-$12.27 billion and adjusted EPS guidance to $5.45-$5.54. That combination is why Truist raised its price target to $230 from $225 and kept a Buy rating, arguing that Cintas has a more macro-resilient revenue algorithm than consensus assumes and that the UniFirst acquisition could provide a multi-year earnings catalyst. UBS similarly raised its target to $235 from $230, pointing to stronger growth and margins than expected. Yet the shares initially fell about 3%, leaving a more important question: how much of this execution is already reflected in the price? Cintas' strong quarter also highlights how investors are rewarding consistent growth and improving profitability across business-services companies. In our recent story, ABM Industries (ABM) Posts Record Revenue Amid Aviation and M&D Strength, we examined ABM's record revenue, stronger adjusted EBITDA, and improved cash generation as it continues to expand across its service businesses. Cintas Corporation (NASDAQ:CTAS) organic growth is becoming harder to dismiss as simply a pricing story. Management said pricing was consistent with the prior year, while new business, retention, and cross-selling all improved. First Aid and Safety was particularly strong, with organic growth of 14.2%, while Uniform Rental and Facility Services grew 8%. That supports UBS' view that the company's momentum is being driven by underlying demand rather than just pricing. UBS specifically highlighted stronger new customer wins and cross-selling, alongside margin improvement from cost management and efficiency gains. The margin picture reinforces that point. Gross margin reached an all-time high of 51.5%, up 120 basis points, while operating margin expanded 90 basis points on an adjusted basis. Management attributed the improvement to revenue leverage, technology investments, routing efficiency, and supply-chain savings. Cintas also said cross-selling produces more efficient revenue because larger customers can be served through an existing route structure. The problem is not whether Cintas Corporation (NASDAQ:CTAS) is executing. It is whether investors are paying enough for that execution to make any slowdown matter. Cintas trades at roughly 36.23 times forward earnings, versus about 21.46 times for Aramark, according to the September 25 data. Truist sees the valuation differently, calling the multiple reasonable relative to Cintas' own history while also pointing to the UniFirst transaction as a multi-year catalyst. But the premium means that the company needs to keep delivering strong organic growth and margin expansion. Management itself cautioned that quarterly growth will not be linear, with the first quarter benefiting from an extra workday and the third quarter facing one fewer. Energy is another pressure point, although management does not view it as material enough to derail guidance. CFO Scott Garula said only about 60% of energy expense comes from truck fuel, representing roughly 100 basis points of revenue, while CEO Todd Schneider said Cintas has several ways to offset higher costs rather than simply passing them through. The $5.5 billion UniFirst acquisition could eventually change the earnings profile, with Cintas Corporation (NASDAQ:CTAS) targeting approximately $375 million of operating cost synergies. Management remains confident the transaction will close before the end of calendar 2026, although the fiscal 2027 guidance excludes its contribution. That gives Truist's multi-year catalyst argument some substance, but it also means investors are effectively valuing Cintas on strong standalone execution while waiting for the acquisition benefits to arrive. Hedge fund ownership increased only slightly, from 63 to 64 funds, while short interest rose to 11.22 million shares from 10.36 million. The combination does not point to a dramatic shift in institutional positioning. For Cintas Corporation (NASDAQ:CTAS), the deciding variable is therefore less about whether the quarter was strong and more about whether 8%-plus organic growth and expanding margins can persist while the company integrates UniFirst. At 36 times forward earnings, the market is already assigning substantial value to that execution. While we acknowledge the potential of CTAS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Jim Cramer Called 3M Company (NYSE:MMM) "Easy Money" As Earnings Hit The Wires and ABM Industries' (ABM) Cash Flow Jump Masks A Split Business Story Disclosure: None. Follow Insider Monkey on Google News.

On September 23, Cintas Corporation (NASDAQ:CTAS) reported results for the first quarter of fiscal 2027, ended August 31, 2026. The company delivered a strong performance as revenue and adjusted earnings per share both exceeded market expectations. Cintas also raised its full-year guidance READ ALSO: Jim Cramer Calls Cintas (CTAS) a "Pretty Good Business" and Applied Industrial (AIT) Smashed Records, Then Guided For Less. Revenue increased 10.9% year-over-year to $3.01 billion, above market expectations of $2.98 billion. Adjusted diluted EPS rose 15.8% to $1.39, compared with market expectations of $1.35. Following the stronger-than-expected quarter, Cintas raised its full-year fiscal 2027 guidance. The company now expects revenue of $12.15 billion to $12.27 billion, compared with its previous range of $12.10 billion to $12.25 billion. Adjusted diluted EPS guidance was also raised from a range of $5.36 - $5.50 to a range of $5.45 - $5.54. The adjusted EPS guidance excludes non-recurring transaction costs related to the company's planned acquisition of UniFirst. The company is still working to obtain regulatory clearance and complete other closing conditions and remains optimistic that the deal will close by the end of calendar 2026. Gross margin for the first quarter of fiscal 2027 was $1.55 billion compared to $1.37 billion in last year's first quarter, an increase of 13.7%. Gross margin as a percent of revenue was 51.5%. Cintas also continued to improve profitability, as Q1 gross margin surged 13.7% year-over-year to reach $1.55 billion. Gross margin as a percentage of revenue grew by 120 basis points to 51.5%, up from 50.3% in the prior-year quarter. CEO Todd Schneider also pointed out that the company is in the early stages of cross-selling, which could potentially be a growth driver. Management said most of the firm's current momentum is coming from volume growth, including new customers, improved retention, and higher cross-selling. These factors also contributed in Cintas raising its full-year guidance. Second-Half Headwinds and UniFirst Uncertainty Remain Despite the strong results, the company faces some risks. Cintas Corporation (NASDAQ:CTAS) operates in a highly competitive market, which limits its ability to increase prices to offset inflation. Management also expects incremental margins to face pressure in the second half of the fiscal year, especially in Q3 because of one less workday and tougher comparisons. The UniFirst transaction remains another source of uncertainty. Transaction-related expenses reduced GAAP EPS by $0.03 in the quarter and are expected to continue affecting results. In addition, the acquisition still requires regulatory clearances in the US and Canada. This creates some uncertainty and potential delays. Bernstein SocGen analyst Connor Cerniglia believes that "the margin upside was likely well advertised intra-quarter, and with the market implying a greater risk of FTC intervention of the UNF deal, perhaps investors are sitting on the sidelines waiting for more clarity." Hedge Fund Interest Hedge fund interest in the stock slightly increased during the second quarter. According to Insider Monkey's database, 64 hedge funds held Cintas Corporation (NASDAQ:CTAS) at the end of the second quarter, up from 63 in the first quarter. Short interest also remains relatively limited. As of August 31, short interest stood at 3.76% of CTAS' float, indicating a relatively low level of bearish positioning in the stock. The bearish thesis remains centered on the potential for second-half margin pressure, limited pricing flexibility, and uncertainty surrounding the UniFirst acquisition. However, the recent quarterly results support the bullish case as the company delivered double-digit revenue growth, exceeded both revenue and adjusted EPS expectations, expanded gross margin, and lifted its full-year guidance. The continued momentum in customer additions, retention, and cross-selling also gives Cintas multiple sources of volume growth rather than relying solely on pricing. While we acknowledge the potential of CTAS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. Disclosure: None. Follow Insider Monkey on Google News.

Image source: The Motley Fool. Wednesday, Sept. 23, 2026 - Chief Executive Officer - Todd Schneider - President and Chief Operating Officer - Jim Rozakis - Executive Vice President and Chief Financial Officer - Scott Garula - Vice President, Treasurer and Investor Relations - Jared Mattingley Operator: Good day, everyone, and welcome to the Cintas Corporation announces fiscal 2027 first quarter results conference call. Today's call is being recorded. At this time, I would like to turn the call over to Mr. Jared Mattingley, Vice President, Treasurer and Investor Relations. Please go ahead, sir. Jared Mattingley: Thank you, Ross, and thank you for joining us. With me are Todd Schneider, Chief Executive Officer; Jim Rozakis, President and Chief Operating Officer; and Scott Garula, Executive Vice President and Chief Financial Officer. We will discuss our fiscal 2027 first quarter results. After our commentary, we will open the call to questions from analysts. The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for forward-looking statements. This conference call contains forward-looking statements that reflect the company's current views as to future events and financial performance. These forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those we may discuss. I refer you to the discussion on these points contained in our most recent filings with the Securities and Exchange Commission. I'll now turn the call over to Todd. Todd Schneider: Thank you, Jared. We are pleased with our start to fiscal 2027. Our first quarter results reflect the strength of our business model, the execution of our employee partners and the value proposition we provide by helping customers meet their image, safety, cleanliness and compliance needs. First quarter total revenue grew 10.9% to $3.01 billion. This marks the first time we have reached $3 billion of revenue in a quarter. The organic growth rate, which adjusts for the impacts of acquisitions, foreign currency exchange rate fluctuations and workday differences, was 8.9%. We remain encouraged by the consistency of demand we are seeing as businesses continue to see the value of outsourcing to a service provider like Cintas. Our first quarter performance demonstrates that Cintas is well positioned to help businesses of all sizes improve productivity, reduce complexity and operate more efficiently. Whether through our Uniform Rental and Facility Services business, First Aid and Safety Solutions, Fire Protection Services or our Uniform Direct Sale business, our value proposition continues to resonate. Diluted EPS for the quarter was $1.36, an increase of 13.3% from the prior year. Adjusting for the UniFirst transaction-related expenses, adjusted diluted EPS was $1.39, an increase of 15.8% from the prior year. Drawing on the strength of our performance, we continued to allocate capital in a balanced manner in the first quarter. Our capital expenditures were within our targeted range at 3.6% of sales. We were active in M&A and increased our dividend 15.6% for the shareholders of record as of August 14, 2026. We are pleased to have increased our dividend every year since going public 43 years ago. In addition, we were opportunistic with our share buybacks, purchasing $545 million through today's date. Our culture remains our greatest competitive advantage. The combination of our strong culture, operational excellence, effective supply chain management, technology investments and focus on customer experience continues to differentiate Cintas in a highly competitive market. Reflecting our strong first quarter performance and confidence in the remainder of the year, we are updating our fiscal 2027 guidance. We are raising fiscal 2027 revenue guidance from a range of $12.10 billion to $12.25 billion to a range of $12.15 billion to $12.27 billion, a total growth rate of 7.9% to 8.9%. We are also raising our fiscal 2027 adjusted diluted EPS from a range of $5.36 to $5.50 to a range of $5.45 to $5.54, a growth rate of 10.3% to 12.1%. Before I turn the call over to Jim, I'd like to provide a brief update on our acquisition of UniFirst. First, we remain confident of the substantial long-term value creation for our combined customers, partners and shareholders. We mentioned on our last call that the merger was subject to regulatory clearances in both the U.S. and Canada. That process is ongoing as we continue to work toward obtaining regulatory clearance and completing other closing conditions. We remain optimistic that the deal will close by the end of calendar 2026. In order to avoid creating speculation, we will not be providing any additional commentary on this process. We will update the market going forward as appropriate. With that, I'll turn it over to Jim to discuss our operating performance in greater detail. James Rozakis: Thank you, Todd. Our employee partners continue to execute at a high level and demonstrate how well our value proposition resonates with customers of all sizes. Our strong top line growth is due to a number of factors, largely concentrated around our ability to deliver more value for customers. We are succeeding in tapping into the massive total addressable market as we convert no-programmers to a managed solution. In addition, we continue to expand our relationships with existing customers by adding new products and services. And we are maintaining strong customer retention while pricing remains consistent with prior years. Let me provide an example in our rental business of converting a no-programmer to a managed rental solution. An owner of a small fitness studio in Florida recently shared on social media why she chose to partner with Cintas. Her story highlights why our value proposition resonates so strongly with small businesses. As her company expanded, she found herself spending more and more time managing restroom supplies, floor mats, air fresheners and other facility needs that were essential to maintaining the experience her members expected. She recognized those responsibilities were taking time away from serving her customers, supporting her employees and growing her business. By outsourcing to Cintas, she gained the convenience of a trusted partner. The breadth of our product line addressed her facility needs while enhancing the image, cleanliness and consistency of her studios. Most importantly, it gave her valuable time back to focus on the core aspects of her operation and what matters most. That's why our value proposition continues to resonate with small businesses and why they represent such an important part of our addressable market. Business owners like her are already managing these responsibilities on their own and recognize that partnering with Cintas helps them operate more efficiently, elevate the customer experience and focus on growing their business. That value proposition continues to drive strong customer demand across our businesses and was reflected in our performance this quarter. As Todd mentioned, we had strong organic revenue growth for the company. Organic growth by business was 8% for Uniform Rental and Facility Services, 14.2% for First Aid and Safety Services, 9.2% for Fire Protection Services and 9.6% for Uniform Direct Sale. Gross margin as a percentage of revenue was 51.5%, an all-time high. Gross margin percentage by business was 50.8% for Uniform Rental and Facility Services, 57.6% for First Aid and Safety Services, 52.8% for Fire Protection Services and 38.9% for Uniform Direct Sale. Gross margin for the Uniform Rental and Facility Services segment increased 110 basis points from last year to achieve an all-time high gross margin of 50.8%. This business continues to benefit from strong revenue growth, which creates leverage. In addition, we continue to see margin expansion as a result of the investments we are making in technology. These technology investments also serve to make it easier for our employee partners to do their job while creating a better customer experience. Our First Aid and Safety Services segment gross margin increased 80 basis points from last year. We continue to grow at attractive rates, which is also creating leverage. Businesses throughout the United States and Canada continue to place an emphasis on workplace safety, training, compliance and health and wellness solutions. Our Fire Protection Services segment had really strong margins for the quarter. Keep in mind that margins can fluctuate from quarter-to-quarter based on the timing of certain investments and sales mix. Some of those investments include increasing growth capacity by hiring technicians needed to perform specialized tasks as well as building out a national footprint. Selling and administrative expenses as a percent of revenue was 27.4%, which was a 10 basis point improvement from last year. With that, I'll turn it over to Scott. Scott Garula: Thanks, Jim, and good morning, everyone. First quarter operating income was $711.9 million compared to $617.9 million last year, an increase of 15.2%. Excluding the UniFirst transaction-related expenses, operating income increased 17.6% over the prior year. Operating income as a percentage of revenue was at an all-time high at 23.6% in the first quarter of fiscal 2027 compared to 22.7% in last year's first quarter. Keep in mind that there was an extra workday in the first quarter. The impact of the extra workday on operating margin was a benefit of 50 basis points, which was offset by 50 basis points of UniFirst transaction-related expenses. Comparing to the prior year operating margin of 22.7%, the adjusted operating margin for the first quarter was 23.6%, a 90 basis point improvement. Our effective tax rate for the first quarter was 20.0% compared to 17.6% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock-based compensation. Net income for the first quarter was $551.7 million compared to $491.1 million last year. This year's first quarter diluted earnings per share was $1.36 compared to $1.20 last year, an increase of 13.3%. Excluding the UniFirst transaction-related expenses, adjusted diluted earnings per share was $1.39 compared to $1.20 last year, an increase of 15.8%. Cash flow generation was strong during the quarter and continues to support a balanced approach to capital allocation. We invested $107.5 million in capital expenditures during the quarter, primarily focused on technology, automation, capacity expansion and infrastructure investments that support future growth. We also continue to evaluate strategic acquisition opportunities across our route-based businesses. Returning capital to shareholders remains an important priority. During the quarter, we increased our regular quarterly dividend by 15.6% and up through today made $545 million in share repurchases. Earlier, Todd provided our updated fiscal 2027 outlook. That outlook assumes the following: Fiscal 2027 has one more workday than fiscal 2026. Keep in mind the first quarter had one extra workday compared to the prior year first quarter. The second quarter will have the same number of workdays year-over-year. The third quarter will have one less workday, and the fourth quarter will have one more workday than fiscal 2026. Our guidance does not assume any future acquisitions. Our guidance assumes a constant foreign currency exchange rate. The fiscal 2027 net interest expense is expected to be approximately $103 million. A fiscal 2027 effective tax rate of 20.4% compared to 20.2% in fiscal 2026. The guide does not include the impact of any future share buybacks or significant economic disruptions or downturns, and the guide excludes nonrecurring transaction costs related to the UniFirst acquisition. With that, I'll turn it back to Todd for some closing remarks. Todd Schneider: Thank you, Scott. Looking ahead, we remain confident in our strategy and the long-term opportunities available to Cintas. We continue to see significant opportunity in a massive addressable market. The market remains highly competitive, and we believe our value proposition positions us well to help our customers meet their needs of image, safety, cleanliness and compliance. The future of Cintas remains bright, and our employee partners continue to demonstrate why our culture is our greatest competitive advantage. As always, I want to thank our employee partners for their dedication to our customers and Cintas. I'll now turn it back over to Jared. Jared Mattingley: Thank you, Todd. That concludes our prepared remarks. Now we are happy to answer questions from the analysts. Please ask just one question and a single follow-up if needed. Thank you. Operator: [Operator Instructions] And our first question comes from Tim Mulrooney from William Blair. Renee Gagliardo: This is Renee Gagliardo on for Tim Mulrooney. It looks like you raised your revenue guidance a little bit here for the full year. Would you mind walking us through what the primary drivers are behind that? Todd Schneider: Renee, this is Todd. I'll start, but we're -- we have many ways to grow. And the most important driver for us is new business. Converting over no-programmers has been a part of our history and part of our future. This is a key component for us, and over 2/3 of our new business comes from no-programmers. So that has been significant for us. We certainly have other ways to grow. And when we think about our current customer growth, that has been important to us and has been steady, if nothing else, positive. But our opportunities there, we see as continuing to grow our volume is our #1 focus. And the key inputs that we're seeing have been creating good momentum for us. I think you saw that in our opening guide, but you also see that in our updated guidance as well. So Jim, anything you'd like to contribute on that subject? James Rozakis: Yes. Not really, Todd. I think that you summarized it well. We're off to a nice start for the year. We really like how we're positioned. It speaks to, again, the size of the market, and that there is, today, we have 1 million customers, and there is 16 million to 20 million businesses. It also speaks to the value proposition that we have and our ability to continue to convert no-programmers over to a managed solution, like the commentary or like the example that I provided in our prepared remarks. Our cross-sell efforts continue to go very well. And I think it's important to note that the vast majority of our growth and the momentum we have is in volume growth, which is more new customers, better retention rates, increase in our cross-sell. So a little bit of improvement on all those, and that's really what's impacting the guide. So we are really pleased with the start of the fiscal year. Renee Gagliardo: And one follow-up on that, specifically around the Uniform Rental space, looks like organic growth stepped up quite a bit in the first quarter versus the fourth. Was there anything notable behind that improvement specifically, be it new account sales or retention? Or was that result more or less in line with your internal forecast for the quarter? James Rozakis: Yes. Thank you, Renee. This is Jim. I'll start on that one. I think that if you unpack the rental division growth, we really have 4 key inputs that we speak about for organic growth of rental. Pricing being one of those, being probably the least important of the 4, and pricing was consistent with prior year. So really no change there. The other 3 being new business, which, once again, 2/3 of that new business comes from that no-programmer space, new business being the most substantial growth driver that we have. That performed well once again in the quarter. Retention continues to perform really well. Slight improvement in retention, and then a little bit of improvement there in cross-sell. So a little bit of improvement, I think, in all 3 of those volume-based buckets that we would note. Now I would keep in mind that rental, in particular, had the most favorable comp in the first quarter. Last year, our rental growth rate in Q1 was 7.3%, so it gave us a little bit more favorable comp. And I would also keep in mind that we are comfortable with that moving a little bit in our stated range of mid to high single digits. So for example, last fiscal year, we opened Q1 with an organic growth rate of 7.3%. That growth rate went to 7.8% in Q2. We turned back to 7.3% in Q3, and then up to 7.9% in Q4. So it just shows that running a business isn't linear, and we expect a little bit of variability quarter-to-quarter, but we're certainly pleased with the start of the fiscal year, and we're appreciative of how well our employee partners are executing. Operator: And our next question comes from Manav Patnaik from Barclays. Manav Patnaik: Just on that last part, Jim, maybe if you could elaborate a little bit more on the customer conversations you're having today, in the context of all the macro uncertainty, rates, even maybe your pending UniFirst deal. Just to get some more color on other than, I guess, some quarterly fluctuations like you talked about the underlying trends still seems much better than last year. Todd Schneider: Manav, this is Todd. I'll start. From a macro standpoint, it is certainly a dynamic environment, but we're pleased with where the demand is coming from with our customer base. As you know, we have a pretty darn broad customer base. So we've got some that are absolutely thriving, and others that are struggling. But in general, we're quite pleased. If you look at GDP and the jobs report, they've been positive. A little -- the jobs have been a little bit choppy. But as we've stated in the past, we don't need that. We prefer an absolutely thriving economy, just like any American would, but we don't need it. And we've demonstrated in the past that we can grow multiples of GDP and multiples of employment. Now we care passionately about how our customer base is performing, meaning how healthy their businesses are. But even in choppy environments, we have the ability to help them. And in certain cases, we're even more valuable then. But as far as any specifics on our customer base, I'll pass it over to Jim. James Rozakis: Yes. Manav, appreciate the question. I would say that, as Todd started -- he ended there, was that our customers right now and any time it's a dynamic environment, they are looking for solutions. They're looking for consistency. They're looking for help in running their business. And outsourcing provides exactly that. It gives them an opportunity to focus back on their business and their core elements of their business. So our value proposition certainly resonates in all different types of economic cycles, but it may resonate even more in a dynamic environment. And we see that in our ability to convert new business and our ability to go ahead and cross-sell. And the majority of our customers today are solving for image, safety, cleanliness and compliance in some way, and they see that outsourcing to Cintas is another way to solve for that, oftentimes a more efficient, more reliable way and certainly a time saver for them. So we really like where we are. We like the value proposition and think it's resonating well even in today's environment. Manav Patnaik: Got it. Okay. That helps frame the second half of the remainder of the year kind of revenue guidance. Maybe any thoughts on the cadence of margins for the rest of the year, any comps or noise to call out there? Todd Schneider: Yes, Manav, we feel really good about our guide. If you look at -- on the margin side, the guide infers a really attractive year, along with operating margin improvement and incrementals right where we like them throughout the guide. So the incrementals that we're guiding for would be now at 32% to 34%. That's an increase from 30% to 32%. And operating margin expansion at double-digit rates throughout. So we feel really good about the guide. James Rozakis: Yes. And Manav, this is Jim. Maybe if I can just provide a little additional color. So certainly, a great start to the year on incremental margins. And as Todd pointed out, expecting to have a good year relative to incrementals mid to high point of the guide, 32% to 34%. I think some things that maybe for -- making sure we frame up the year correctly, just keep in mind that Q1 and the first half is largely a little bit of a tailwind. So Q1, we get one extra workday and the comps in the first half prior year, we're coming off our most favorable comparisons. Prior year incrementals in Q1 were 26%, Q2 were 27%. That dynamic reverses in the second half of the year. And in Q3, we have one less workday. And in Q4, we have our most difficult comp, effectively 38% for the Q4 last year incrementals. So overall, shaping up to be a really nice year in our stated range, but in the upper half of our stated range, but you may see some variability quarter-to-quarter. Scott Garula: Manav, just a couple other points. This is Scott. Todd had talked about our guide. The only thing that I might add on the EPS guide is that at all points of the guide, we're demonstrating double-digit earnings growth, EPS growth throughout the range. Jim's alluded to the additional workday, and certainly the extra workday provided a little bit of a tailwind for us. You heard my opening comments that it had an impact on operating margin of 50 basis points. If you think about the workday impact on incrementals in the first quarter, it was 400 basis points. And then I think it's important that, as I talked about in the opening remarks on the number of workdays by quarter, we had the benefit of an additional workday in Q1. In Q2, there is the same number of workdays year-over-year. And then in Q3, we actually have one less workday. And in Q4, we have one more. So when you think about the tailwind that we had in the first quarter on operating margin and incrementals, it's going to be a headwind in Q3. And just think about for the year, the one extra workday on an annual basis, revenue, think about the extra workday on an annual basis of 40 to 50 basis points. On operating margin, think about it in the range of 10 to 15 basis points. And then on incrementals for the year, think about the extra workday in the range of 100 to 125 basis points. So this will be a year that we're going to be talking about workday differential quite a bit. We definitely had a tailwind on that in Q1, and it will create a headwind for us in Q3. So make sure as you're thinking about the year, you think about the workday differential and the impact on growth and margin. Operator: And our next question comes from Andy Wittmann from R.W. Baird. Andrew J. Wittmann: All this digging into the guidance and those assumptions is really helpful. I know this is a smaller point, but one I think that is worth understanding is on the interest expense. I just noticed that for the quarter here, you weren't quite $25 million of interest expense, a little bit of interest income on that. You're guiding your net interest expense increasing for the year, and you've got a comment in your release about how amortization costs are a factor in that related to the UniFirst deal. So I just was hoping to understand maybe, Scott, the mechanism by which that happens. Like the deal hasn't closed yet, but you've lined up some financing in advance of that, that you're paying noncash interest on. Can you just help me understand this so that we can get our model correct, and we don't have to -- so we can just understand how this is going to play out for the year, please? Scott Garula: Yes. Thanks for the question. I guess as far as -- I'll answer the question in really 2 parts. When you think about our guide on our net interest expense of $103 million, we're really not changing the guide for Q2 through 4. We had some favorable results in the first quarter, just based on a positive cash flow and the fact that we were not in CP, commercial paper, at the end of the first quarter. So that had a positive impact in Q1. But if you look at what it implies for Q2 through Q4, it lines up with the original guide that we had. As far as the financing related to the UniFirst transaction, those fees are related to the bridge loan that we secured. And we've got fees associated with that bridge loan of approximately $6 million over the term of the agreement. Think about it, $6 million over 18 months. And that gets expensed to net interest expense, and that's what you're seeing there. So for fiscal year '27, that will account for about $4 million of interest expense. Andrew J. Wittmann: Got it. That's helpful. And I just wanted to ask my follow-up on the fire segment and the implementation of the SAP system there. We saw obviously the impact to the SG&A in that segment from that initiative. I was hoping you could maybe comment on if this is the right kind of SG&A level to think of for the balance of the year. Where is the status of that program today in terms of its rollout? And do you have any better clarity on when the go-live of that system will happen so that we can just start thinking about the profit margin benefits that, that can result with as well as the falloff of the onetime cost for its implementation. James Rozakis: Andy, this is Jim. I'll start on Fire Protection. And then if Scott wants to add any more color relative to the SG&A line. But I would tell you that the SAP, we have not started and we have not gone live with SAP in our Fire Protection business yet. SAP is still in pilot, and we are working diligently on that program, and we expect it to start rolling out at some point during this fiscal year. And as you know, rolling out a conversion like this is typically difficult and certainly complicated. But we like our playbook. We like our track record of ERP implementations like this, but it will take time, but it's not impacting our guidance or it's not impacting our results at this point. Scott Garula: Yes. Just, I guess, to add some color on SG&A. When you look at our overall SG&A expense, it's really flat. When you look at the Q1 over Q1 as well as sequentially, the UniFirst transaction expenses are pulled out of that. So we are comparing apples-to-apples. And this is the area of the P&L that you're seeing some of our investments to continue to grow at the attractive rates. Some of those investments would include technology. Some of those investments, selling resources, management bench strength. So those are some of the key inputs that help drive the top line revenue momentum that you're seeing. But overall, SG&A is flat sequentially and year-over-year. James Rozakis: Yes. And maybe the last point I might just add, Andy, is that when you look at the All Other segment, it does include our Uniform Direct Sale business, and we know that the results in that business tend to have a little bit more variability quarter-to-quarter. So keep in mind, that's a blended result. Operator: And our next question comes from George Tong from Goldman Sachs. Keen Fai Tong: Can you talk a bit about how performance in the quarter varied across your verticals? Where you're seeing the most strength and where you're seeing any pockets of weakness? James Rozakis: George, this is Jim. I'll start on that. And I would tell you, again, we really like the verticals that we've selected and all of them are performing quite well for us, and they continue to outperform the business as a whole. And so we're pleased with where we are. As a reminder, we're organized around health care and not only just in selling resources, but also our product line and delivery methodology there. Our hospitality, state and local government and education, all of those have performed really well for us and continue to perform well for us, and we continue to make investments and really like the verticals that we've selected and really like the way we've organized around those. So nothing specific to call out as one outperforming the others. They're all performing above the company average. Keen Fai Tong: Got it. That's helpful. And then can you talk a bit about how higher fuel and energy costs are impacting margins? And what actions, including pricing and operational changes you're taking to offset the impact? Todd Schneider: George, I'll start with that one. As you know, it's a volatile situation with the price at the pump. As a reminder, we do not pass through any fuel surcharges. We manage it operationally, and we expect to get -- extract out inefficiencies in our business, and I think you're seeing it show up. The price at the pump is certainly up. We had a good success from going from Q4 to Q1, down 10 bps. We're up year over prior 10 bps on energy. But we're -- from a modeling standpoint, we expect it to be at, I'll call it Q4 type levels, so a little bit above where we were in Q1 for the rest of the year. But we're going to manage through this. And as a reminder, price at the pump is about 60% of our energy costs, which is about 100 bps for the year. So there's other input costs, whether it's electric or natural gas, and we feel good about how the team is managing it. Volatile area of the economy, but we're prepared to manage it and manage it efficiently, and it's certainly contemplated in our guide as well. Operator: And our next question comes from Josh Chan from UBS. Joshua Chan: Maybe sticking on the inflation side for a bit. Could you talk about kind of other areas of the cost structure, cotton, what you're seeing in terms of inflation and kind of how you're managing those areas? Todd Schneider: Yes, Josh. So we're certainly not immune from inflation. It is something that when we think about it, we think immediately about corporate culture because corporate culture is our ultimate competitive advantage. And when you're dealing with these types of environments, it gives us an opportunity to really shine. And our supply chain has done a remarkable job in managing through the input costs that are important. And we've -- we're committed to managing this efficiently. And as inflation is up, we don't take the approach that, well, prices -- our costs are up, so we're just going to pass along to the customers. We don't take that approach because we operate in an incredibly competitive market. Our customers have choices. And as a result, we've got to be better than that. And the organization knows that. The leadership team has digested that and leads through it. And so we find ways to extract out inefficiencies in our business. And we're doing that by investing appropriately and seeing around the corner, and technology being an important area for that. So we're -- you're seeing that show up in our results. And we think we're well positioned to manage it moving forward. So yes, we'll monitor it. We'll manage it. But as a result of that, as Jim stated earlier, our growth that you're seeing is not because of pricing. I mean, it's -- pricing always plays some component in it, but it is consistent with past years. Our growth is from volume, and our margin expansion is because of our corporate culture, and our team seeing around the corner and implementing projects that help us extract out those inefficiencies. I'm really proud of what they've accomplished. Scott Garula: Josh, this is Scott. I might just add one other point that when you think about inflation and certain parts of the P&L that might impact. We also have the advantage of time, meaning that any inflationary pressure that we receive on material cost, that gets amortized. For instance, on the garment side, the average amortization period is 18 months. If you think about another part of the P&L, like plant equipment or trucks, we also have the advantage of time here where we depreciate those -- that equipment over, call it, an average of 10 years. And then there's certainly other areas of the P&L. Todd talked about energy, supplies. Those are impacted, but they're just not material to our overall results. And as Todd alluded to, we've been able to overcome any inflationary pressure on fuel and have demonstrated that really over the last 2 fiscal quarters. Joshua Chan: Yes. That's great to hear. And maybe on the growth side of things, just stepping back from the quarter and the days, I guess 2 years ago, you were growing around 8% organic. Now you have a couple of quarters in a row of above 8% organic and kind of almost 9% this quarter. So as compared to then, what's better now? Because I know that you have always had good retention. Your new business is always strong, but what's different now versus maybe like a year or 2 ago? James Rozakis: Josh, this is Jim. I'll start on that one. And again, as I think we unpack our main drivers of growth and we look at the big inputs, I think Todd pointed out, we said a couple times, pricing is consistent with prior year. So that's neutral in our growth algorithm there. And then if you look at the other 3, when I say the other 3, new business being the biggest contributor of our growth. You look at strong retention and then cross-sell. Each 1 of the 3 have had improvements over the last year. So we continue to see improved productivity from our sales organization. Our sales organization is doing a great job capitalizing on the TAM and the unserved marketplace. So we're really proud of the work that they're doing there. Retention has been really attractive but continues to show incremental improvements, and we like the trend line what we have going on with our retention. And then cross-sell, this is one that we've been working really hard on continuing to penetrate our current customer base. And we recognize in our current customers that there is so much opportunity of products and services that we supply that they are already spending money on in other ways and trying to solve for that issue. And our teams have continued to focus on that. We're working really diligently on that one, and we continue to see incremental improvements in our cross-sell efforts. So if you look at that across the board, new business retention and cross-sell kind of evenly distributed on the improvement. Now I did mention earlier in the commentary that we do expect that this growth will move from quarter-to-quarter, and running a business isn't linear, so it doesn't just continue to go up in perpetuity. You will see some changes quarter-to-quarter, like the example I gave of our rental business going through last year. But we're pleased with the start of the year. We're pleased with how well our value proposition resonates, and we like where we're at. Joshua Chan: And congrats on a really strong quarter. Operator: And our next question comes from Jasper Bibb from Truist Securities. Jasper Bibb: I wanted to follow up on the earlier question on energy costs as a percentage of revenue in the guide, if you don't mind. I think the initial guide assumed about a 20 basis point year-on-year headwind. If I extrapolate your comments about being similar to the fiscal fourth quarter '26, I think it's still maybe 20 basis points, maybe 30 basis points headwind in your '27 guidance. Is that the right way to think about it? Scott Garula: Yes. Jasper, this is Scott. Yes, just to kind of walk through energy, we finished the quarter at 1.8% in energy, which, as Todd alluded to, was up over last Q1 by 10 bps, but down versus Q4 by 10 bps. We feel really comfortable with how we've got energy contemplated in our guide, which is slightly above where we actually experienced Q4, and we're not expecting energy to be a headwind relative to our guide. And as Todd alluded to, when you think about our energy expense, only 60% of our energy expense is fuel for our trucks, so call it 100 bps. So we're seeing a 30% increase at the pump. That for an extended period of time, that could be 30 bps impact on the P&L from our historical levels of 1.7. And we've got a variety of ways that we can offset that. And I would chalk the first one up to what Todd talked about inflation. That's just our culture. But no matter what our performance is, no matter what environment that we're operating, we're always looking at ways to extract cost or inefficiencies from the business to offset any cost headwinds. Jasper Bibb: Makes sense. And then just another really nice quarter for First Aid. Can you talk about what's driving the success there and where you are as far as the cross-selling penetration between your First Aid customers and your uniform customers? James Rozakis: Yes, Jasper, this is Jim. I'll start on First Aid and Safety and start with, we really love the First Aid and Safety business and the value proposition that it represents and certainly an easy one for our employee partners to rally behind is taking care of the health and wellness of employees and customers of our customers. So they've done a fantastic job in that business. So we really like the outlook of it. Certainly, as I mentioned in my commentary, more and more people continue to focus on providing those wellness solutions. I would just say that, that business certainly cross-sell is a key component, but their growth algorithm is pretty similar to what I just described in the rental business, which is you've got kind of 4 major inputs. You have pricing. And once again, pricing is consistent with prior years. New business, and we continue to see increased productivity levels on our new business team in our First Aid and Safety business, and we like the way that's performing. Retention is up, and cross-sell continues to perform very well. And we've got nice momentum behind cross-sell between our rental customers and our First Aid and Safety customers. So I would say again, that's one that's pretty evenly distributed across the board, and we're really pleased with the way that business is performing, and our employee partners are executing at an extremely high level. Operator: And our next question comes from Jason Haas from Wells Fargo. Jason Haas: I wanted to follow up on an earlier response to a question around incremental margins. I thought you said that the guidance implies incremental margins this year of 32% to 34%. Can you just clarify like what exact math you're doing to get there? Is that like the high end of guidance? Are you taking like -- can you just explain that math because I'm having a little trouble getting there. Scott Garula: Jason, this is Scott. When you're looking at the implied incremental margins at 32% to 34%, that's based on the mid and the high end of the revenue range. So that's where you should focus in doing the math there to arrive at that 32% to 34% incremental. Jason Haas: Okay. Great. All right. Cool. I'll double check that. And then I just wanted to follow up on the Fire Protection segment. The growth -- I know you guys are a little bit of a victim of your own success here, but the growth moderated a little bit, but then there was a really nice improvement in the gross margin. So I wasn't sure if maybe you're like shedding some lower-margin business? Or if there's any dynamics to discuss within fire there? James Rozakis: Yes, Jason, this is Jim. Let me unpack that one a little bit. I'll start on the top line with the revenue. And I would say that the revenue is really nothing specific to call out. Again, growth is going to move a little bit quarter-to-quarter. And our growth expectations in this business remain unchanged. We expect this to be a double-digit growth business. Our trailing 12 months is above 10%. It's around 10.5, and we expect to finish this year over 10%, and we love the fundamentals of this business. But you will see some variation quarter-to-quarter. So the first quarter was a little bit lower. We'll expect it to move around a little bit in future quarters. Now regarding margin, I do think it's probably worth spending a minute on the margin. We had a really strong quarter in the first quarter on gross margin in Fire Protection. Certainly, that benefited from one extra workday, but it also benefited from some mix of business. And you will see that margin move in future quarters, and it'll move for really 2 primary reasons in this business. One will be continued investments. And as we mentioned, we love the outlook of this business and we love the growth trajectory of this business. So we want to continue to make investments in this business. Part of that is investing in capacity. And in this business, capacity comes in the form of technicians that can get out there and perform specialized work. And as you bring those technicians on, not quite as productive day 1. So that could impact the margin to go backwards there a little bit. And certainly, another investment we want to make is in bench, and we know that we have a bright outlook of this future, so we need to invest in our leadership bench strength. And then last, and probably most significant, would be new flags as we continue to build out a national footprint in this business as we still don't have operations in cities like Charlotte, Nashville and Minneapolis. So we will plant new flags. We will continue to invest in this business, and that will cause a little bit of that gross margin to move from quarter-to-quarter. The second item that really moves gross margin in this business is revenue mix. And it's -- the business has a lot of revenue streams from the portable fire extinguishers to the alarms to the sprinklers and lots of ways that those streams generate revenue. Things like test and inspection, repair work, project work and/or equipment. And how that revenue moves, the mix of that revenue from quarter-to-quarter will impact gross margin. The first quarter of this year, we certainly benefited from the extra day, but also a very, very favorable revenue mix. So you may see that move a little bit in future quarters. Scott Garula: And then Jason, this is Scott again. Just going back to your question on the math on incrementals. One thing just to remind you to keep in mind is the workday differential impact that I walked through earlier. For the quarter, incrementals benefited from the extra workday by 400 basis points. For the year, as you're doing the math on that incremental margin, just take into consideration that, that extra workday on the year will have 100 to 125 basis point impact on incrementals. Operator: And our next question comes from Seth Weber from BNP Paribas. Seth Weber: There have been a few questions and answers about cross-selling this morning. I was wondering if -- is it possible to frame that for us, what your wallet share is today or kind of penetration rate? Or just give us some metrics around where that is today versus where you think what that -- what you think that could add to the business going forward? Todd Schneider: Seth, this is Todd. I'll call it, we're in the early innings of cross-sell. We think it can be an important driver for our business. And Jim mentioned that one of the keys around this is -- this isn't new money. Whenever we go to cross-sell, our customer base is solving for whatever the items that we're talking about in some manner. And so that's important for us as we move forward. Certainly, we think the more products and services we provide, the more value that the customer sees in us, and that's obviously a great indicator of our relationship with them. But it's a -- there's -- we're very much in the early innings as far as cross-sell, and we're encouraged by the moves we've made and the outlook there. Seth Weber: Okay. And then maybe just another one on the macro. Have you seen any kind of extension in the sales cycles or contracts taking longer to execute? Or any kind of just pause from customers as they contemplate making these changes? Todd Schneider: Yes, Seth, we have not seen any changes to sales cycle. And as I mentioned earlier, we've got such a broad customer base that you'll see puts and takes within those. But in general, I would say the customer base is quite stable, and I haven't seen any real changes in the base of the customers. Operator: And our next question comes from Curtis Nagle from Bank of America. Curtis Nagle: Terrific. Just a quick clarification point. I just want to make sure I understand how energy is factored into the guide. Scott, I think you said for the year, slightly above the range in 4Q. So does that imply, I think, somewhere around 1.8% of sales? And then if I were to compare that for the total year in terms of rate of change, what would that be? So from fiscal '27 to '26, how many basis points difference? Scott Garula: Yes. Thank you for the question. When we think about energy, I'll just kind of go back and compare Q1 results to prior Q1. We were up 10 basis points over first quarter last fiscal year, down versus Q4 of last fiscal year. And the guide contemplates being slightly higher than where we were in Q4. So we're not expecting to experience any headwind relative to our guide. And just to reemphasize a point that Todd made earlier. When you think about energy, 60% of our energy costs are related to fuel for our trucks. That breaks down to about 100 basis points. So even if we experienced a really elevated fuel at the pump, let's say, 40% increase for an extended period of time, that's 40 basis points of incremental cost that we would be facing, which in the whole grand scheme of things is immaterial. And we've demonstrated over time that we can overcome that. Todd mentioned our culture of extracting costs from the business. Our global supply chain continues to operate at a high level and is a strategic advantage for us. And we just don't -- we don't feel that is going to have an impact on the business. So I would take a look at where our energy expenses are in Q1, maybe take a look at it from Q4. And if you're looking at modeling, that's where I would place it. Todd Schneider: Curtis, I'll just say that trying to predict exactly what's going to happen with the price of oil and the price at the pump, I mean that's challenging. The vast majority of our fleet is gas. Diesel has been -- is a very small percentage. So not as much of exposure there by any stretch. And -- but to Scott's point, we've got to contemplate -- we're contemplating an increased level for the balance of the year, and we've got other levers that we're going to extract out. So if energy is up some, we're even above where we're expecting, then we'll manage it. And I think we've demonstrated the ability to manage input costs in the past, and we're confident in our ability to meet our guide. Curtis Nagle: Okay. Great. And then maybe just one last follow-up relative to cross-sell. So yes, obviously, I've seen some really strong wins with -- sorry, within the existing base. Is that overall or specific product lines you'd point out in terms of where you're seeing outsized success. Anything you can comment there? James Rozakis: Curtis, this is Jim. I'd start with that one. And yes, I would say, no, no one specific product line to call out. Every customer has different needs. One of the unique parts about our model is that we're a high-touch model, meaning we have representatives within their facilities on a regular cadence, and they're often able to really get to know those customers, understand their needs, understand their pain points, understand the things that they're working diligently to solve for, and we have such a broad product offering that it's really one-off on exactly what products may resonate for a particular customer at a particular time. But we like the fact that we're in there, we're building relationships, we're demonstrating our professionalism, our reliability, our consistency, how that creates convenience for the customer. And then just trying to set the stage that every time they have a need, they think about us first, and we're able to go ahead and capture a little bit more of that wallet share and have them redirect spend over to us. So really broad success across all of our product lines, continuing to move. And now maybe one other thing I might just say is that we talked about this as incremental success, right? This is an area we've been working on for quite some time, and we continue to see incremental success and would imagine that this will be one that we can continue to work on. But it is not an overnight change in the business. This is not a new strategy to us. Operator: And our next question comes from Faiza Alwy from Deutsche Bank. Faiza Alwy: I wanted to ask about the labor environment. I think you talked about improving retention, but I've seen more recently, obviously, it's in the transportation market and maybe some homebuilders talking about a tighter labor market. And I'm curious if, one, you're seeing any signs of tightness from where you sit and just based on what you're seeing in some of the other sectors, sort of if you're planning for a tighter labor market and kind of what that entails? Todd Schneider: Faiza, it's Todd. Yes. Our retention levels of our employee partners is really attractive at record levels. We recognize, just like customers, our partners have the ability to go and work other places, and we work really hard to provide attractive wages and benefits, but more so just the environment that they operate in and the culture. So we're quite proud of where we are with retention levels and we try to see around the corner and anticipate those needs, and we think we're well positioned. As far as in construction or in transportation, I think, in particular, they're dealing with some unique circumstances there that I think are not affecting us in any broad manner whatsoever. So we feel quite good about where we are and where we're heading there. Faiza Alwy: Great. And then just to follow-up, and apologies if I'm breaking any rules, but I did just want to ask about the UniFirst transaction and whether you've kind of responded to the FTC with information that they might have asked, given that you're so optimistic about the end of your time lines? Todd Schneider: Yes, Faiza, I appreciate your question, but we're not going to comment any further on the UniFirst transaction just to avoid any speculation. But as I stated in my prepared remarks, we remain confident that we'll close the deal in the back half of calendar 2026. Operator: And our next question comes from Toni Kaplan from Morgan Stanley. Toni Kaplan: You talked earlier in the call about some of the higher cost dynamics. I was wondering if you would expect the industry to sort of command higher prices next year if these dynamics persist, like how you think about the outlook for pricing of the industry. Todd Schneider: Yes. Toni, this is Todd. I certainly cannot speak for the marketplace in general. We compete with all kinds of different companies. So all I can speak of is how we run our business, and we respect the fact that our customers have choices and we operate in an incredibly competitive market. So as a result, we're going to do -- we're going to leverage our corporate culture and leverage our competitive urgency and our focus on making sure that we don't accept just input costs going up, and where we do have input costs, we're not going to just simply pass it along. So we've got to be better than that. And we expect that -- to be better of the leadership team, and they're performing. And we would expect that we'll continue to manage it in that manner. And as I mentioned, I'm incredibly proud of what the leadership team has accomplished, and I think we're well positioned for the future. Toni Kaplan: That's great. And you talked about productivity initiatives to try to offset maybe some higher costs. And so can you give an example maybe of -- maybe an impactful productivity initiative that you've been able to achieve recently or just areas where you think the most -- you would be able to get the most bang for your buck in terms of productivity initiatives? James Rozakis: Toni, this is Jim. I'll start on that one. And as we look at trying to expand our margin and deliver strong financials, it always starts for us with strong top line growth. And we know that, that top line growth creates great leverage for us. And that improves things like routing efficiency when you have more and more customers in a marketplace. When we're effective at cross-sell, the average size of each customer becomes larger, and that's a more efficient piece of revenue than a new piece of revenue. Every time we have great work on top line, it increases our capacity utilization in all of our businesses, depending on whatever the capacity is. So it always starts with a continued focus on strong top line growth and creating that leverage. And then I think it's been mentioned a number of times, we really do focus on technology and using technology to extract out things that are inefficient in our business. And we've spoken about SmartTruck and SmartTruck being available to us to continue to incrementally route more efficiently, and we've been able to grow in excess of job creation for -- in excess of route creation for some time now by making those routes more efficient. Garment sharing in our rental business has been enabled through technology. That's in the early innings, and we have great opportunity with garment sharing. Things like automation. We talked about sortation, but automation shows up in a lot of different ways, and those can incrementally make you more efficient. We also love the work by our supply chain. And when we have continued revenue growth, that gives them advantage to get some volume discounts out there and do what they do. So really, all of those, I think, are major inputs towards what I'll call making the business more efficient or extracting out the efficiencies that Todd talked about, and that's our preferred methodology for margin expansion. Todd Schneider: Toni, this is Todd. You heard a number of things from Jim there, and it all goes back to culture, and it goes back to there is no home run where -- well, oh my goodness, we are getting massive productivity increase because of this. There's a tremendous amount of singles and doubles, and that is our culture. And that's what we leverage. And we would love home runs, right? But it's a lot of singles and doubles, and we're seeing around the corner, and we know we're going to need more in the future. And so we're expecting that. Jim mentioned technology. That's obviously a big one. Most companies are going to have to leverage technology to improve productivity. And as we think about technology, we think about it in 2 manners. Number one, making it easier for our customer to do business with us. And number two, making our -- helping our employee partners to do their jobs more effectively, making it easier to do their jobs. So both show up in a very positive way, ultimately in our results. Operator: And with that, the question-and-answer session has concluded. I will now turn the call back over to Jared Mattingley to close out the call. Jared Mattingley: Thank you for joining us this morning. We will issue our second quarter of fiscal 2027 financial results in December. We look forward to speaking with you again at that time. Thank you. Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect. Before you buy stock in Cintas, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cintas wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $384,839!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,385,657!* Now, it's worth noting Stock Advisor's total average return is 936% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. 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Cintas Corporation CTAS reported first-quarter fiscal 2027 adjusted earnings of $1.39 per share, which beat the Zacks Consensus Estimate of $1.35 by 3.0%. The bottom line increased 15.8% from the year-ago quarter. Revenues of $3.01 billion surpassed the consensus estimate of $2.97 billion by 1.3% and rose 10.9% year over year. The top line benefited from 8.9% organic revenue growth, reflecting growth after adjusting for acquisitions, foreign currency movements and workday differences. Record gross and operating margins were other key highlights in the quarter. The company has two reportable segments, Uniform Rental and Facility Services and First Aid and Safety Services. Other businesses are included in All Other. Quarterly sales data are briefly discussed below. Cintas' Uniform Rental and Facility Services segment generated revenues of $2.29 billion, up 9.7% year over year from $2.09 billion. Segment operating income rose to $575.09 million from $499.94 million. The First Aid and Safety Services segment delivered revenues of $388.52 million, increasing 16.1% from $334.66 million in the prior-year quarter. Operating income climbed to $99.54 million from $80.33 million. Revenues from the All Other segment totaled $330.73 million, up 13.1% from $292.40 million a year ago. Segment operating income increased to $51.67 million from $37.60 million. Cintas Corporation price-consensus-eps-surprise-chart | Cintas Corporation Quote Cintas' cost of sales totaled $1.46 billion compared with $1.35 billion in the year-ago quarter. Gross margin increased 13.7% to $1.55 billion, while gross margin, as a percentage of revenues, expanded to 51.5% from 50.3%. Selling and administrative expenses were $827.24 million, up 10.5% year over year. The company also incurred $14.41 million of transaction expenses related to the proposed UniFirst Corporation acquisition. Operating income rose 15.2% to $711.89 million. Operating margin improved to 23.6% from 22.7% in the prior-year quarter. Net income increased 12.3% to $551.71 million, while net income margin was 18.3% compared with 18.1%. The effective tax rate increased to 20.0% from 17.6%. In the first quarter of fiscal 2027, Cintas generated $572.33 million in net cash from operating activities, up from $414.48 million in the year-ago period. Capital expenditures totaled $107.53 million compared with $101.96 million a year earlier. Free cash flow increased to $464.80 million from $312.52 million. Net cash used in investing activities was $117.37 million, reflecting capital expenditures, purchases of investments and business acquisitions. During the quarter, the company repurchased common stock worth $315.71 million and paid $180.70 million in dividends. Net cash used in financing activities totaled $500.17 million. Cintas exited the quarter with cash and cash equivalents of $243.60 million compared with $289.02 million at the end of fiscal 2026. Accounts receivable increased to $1.59 billion from $1.56 billion, while inventories declined to $433.29 million from $446.44 million. Total current assets were $3.93 billion compared with $3.85 billion at May 31, 2026. Long-term debt was $1.43 billion, while debt due within one year totaled $999.29 million. Total shareholders' equity increased to $5.20 billion from $5.14 billion. For fiscal 2027, the company raised its revenue guidance to $12.15-$12.27 billion from the prior projection of $12.10-$12.25 billion. Adjusted earnings per share are now projected in the range of $5.45-$5.54, up from $5.36-$5.50 previously. The guidance excludes expected impacts from the proposed UniFirst acquisition and assumes no future acquisitions and constant foreign exchange rates. Fiscal 2027 also has one more workday than fiscal 2026. Cintas expects net interest expense of approximately $103.00 million compared with $101.20 million in fiscal 2026, with the increase primarily tied to amortization of bridge loan financing expenses related to UniFirst. The company projects an effective tax rate of 20.4% for fiscal 2027. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. In the third quarter of fiscal 2026 (ended June 2026), Spectrum Brands Holdings, Inc. SPB reported adjusted earnings from continuing operations of $2.79 per share, increasing 125% from $1.24 in the year-ago quarter and surpassing the Zacks Consensus Estimate of $1.49. Net sales increased 7.7% year over year to $753.3 million and surpassed the Zacks Consensus Estimate of $732 million. Interparfums, Inc. IPAR posted quarterly earnings of 95 cents per share in the second quarter of 2026, which decreased 4% from 99 cents reported in the prior-year period. The metric missed the Zacks Consensus Estimate of $1.04 per share. Consolidated net sales rose 2% to $341 million from $333.9 million in the year-ago quarter. Organic sales rose 1%. Excluding headwinds related to the war in the Middle East, second-quarter organic sales increased 4%. lululemon athletica inc. LULU reported adjusted EPS of $2.06 in the second quarter of fiscal 2026 (ended July 2026), which declined 33.5% year over year but surpassed the Zacks Consensus Estimate of $1.79 by 15.1%. The company's revenues declined 4% from the year-ago period to $2.42 billion and 5% on a constant-dollar basis. Revenues missed the Zacks Consensus Estimate of $2.47 billion by 2.1%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cintas Corporation (CTAS) : Free Stock Analysis Report lululemon athletica inc. (LULU) : Free Stock Analysis Report Interparfums, Inc. (IPAR) : Free Stock Analysis Report Spectrum Brands Holdings Inc. (SPB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Cintas Corporation's (NASDAQ:CTAS) first-quarter earnings yesterday weren't bad by any stretch of one's imagination. The most important things I'd look for in an earnings result were there. The big question, however, is whether the stock price already reflects all of this good news. Or, better still, does the business have enough growth runway that isn't yet reflected in the stock price? Missed AI's "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we're only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue » The workday supply specialist's shares fell nearly 3.5% in yesterday's trading session following the earnings announcement, but have mostly reversed those losses today, trading up 3.2% by 1:20 p.m. Image source: The Motley Fool. Revenue for the first quarter of fiscal 2027 (ended Aug. 31, 2026) came in at $3.01 billion, a solid 10.9% increase year over year. Organic revenue growth (barring acquisitions) stood at 8.9%. Earnings per share (EPS) grew nearly 16%, clocking in at $1.39 while also beating estimates. Cintas's primary business, its uniform rental and facility services, grew 8% organically and accounted for about 76% of total revenue. But the smaller segments grew as well. Segment | Q1 2027 organic yoy revenue growth* Uniform rental and facility | 8.0% First aid and safety | 14.2% Fire protection | 9.2% Uniform direct sale | 9.6% Source: Q1 2027 earnings call. *y-o-y: year-over-year On the earnings call, management emphasized that volume was the primary growth driver, rather than aggressive price increases, despite inflation being up. Essentially, that's the durable growth the underlying business can deliver. To me, that says something about customer demand. When customers see enough value in outsourcing these supplies to Cintas, it indicates there's still significant room for growth by bringing in businesses that currently handle these needs in-house. According to management, the total addressable market is between 16 million and 20 million businesses, while the company currently serves about a million of them. That's a massive market with plenty of room to create value. Additionally, overall gross margin increased to a record 51.5%, primarily driven by higher profitability in other segments. The first-aid and safety segment, for example, achieved a gross margin of 57.6%. Management said the improvement in profitability came from a lot of small productivity gains rather than one big transformational project. Again, that means management has many levers, including technology investments and automation that drive efficiency, at its disposal in order to sustain profitability. CEO Todd Schneider also highlighted the ability to cross-sell its various services to the same customers, reminding that the company is still early in the phase. Here's where that's highly useful: First, it means lower costs to acquire new customers, further driving margins, and second, average volume growth from the same customer increases, further cementing the growth runway. Essentially, having multiple avenues to grow both revenue and profits in a massively untapped addressable market is the best business to have. CTAS Gross Profit Margin (Quarterly) data by YCharts. There's little doubt that Cintas remains an excellent business. The real question for investors is whether the stock has enough room for further growth. Shares currently trade at an expensive 40.5 times trailing earnings and 36 times forward earnings. Can the high single-digit organic growth persist while margins continue to expand, or at least remain stable, with cross-selling services really taking off? From its latest earnings results, I'm inclined to think so. What makes me bullish about the business is its ability to rely on multiple growth levers and implement numerous productivity initiatives. Additionally, the company isn't racing against time to achieve this growth. I think the market is being conservative in its expectations for the business, and I doubt investors are looking more than two years ahead when pricing this stock. The stock price has stalled for the last 12 months or so, but I'd attribute that to the market waiting for more favorable news than anything else. That said, if inflation continues rising, organic growth may slow to mid-single-digit gains, and the market may assign a lower P/E multiple. On a conservative basis, if shares fall to a price-to-earnings ratio of 30 over five years while earnings grow at a modest 10% per annum, Cintas stock should still reach $245, implying a 24% upside. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Cintas updated its fiscal 2027 revenue guidance to a range of $12.15 billion to $12.27 billion, representing a total growth rate of 7.9% to 8.9%, with organic growth for the first quarter varying by business segment from 8% to 14.2%. - Performance attribution is primarily linked to volume growth rather than pricing, with over two-thirds of new business coming from converting 'no-programmers' to managed solutions. - Gross margin reached an all-time high of 51.5%, supported by strong revenue leverage and strategic investments in technology and automation. - The Uniform Rental and Facility Services segment saw a 110 basis point margin expansion, benefiting from increased route density and technology-enabled efficiencies. - Management attributes sustained margin improvement to a corporate culture focused on 'singles and doubles'—continuous incremental gains in operational productivity. - Cross-selling efforts are in the 'early innings,' focusing on capturing existing customer spend by addressing image, safety, and compliance needs through a high-touch service model. - Supply chain management and technology investments, such as SmartTruck and garment sharing, are being used to extract inefficiencies and offset inflationary pressures. - Raised full-year revenue guidance to $12.15 billion–$12.27 billion and adjusted EPS to $5.45–$5.54, reflecting confidence in consistent demand. - Guidance assumes a significant workday differential: Q1 and Q4 have one extra day, while Q3 has one less day, impacting quarterly margin comparisons. - Management expects incremental margins for the full year to land between 32% and 34%, despite anticipated headwinds in the third quarter due to the workday calendar. - Strategic investments in Fire Protection Services will continue, including hiring specialized technicians and 'planting new flags' in untapped markets like Charlotte, Nashville, and Minneapolis. - Energy costs are projected to remain at or slightly above Q4 levels, with management planning to offset these through operational efficiencies rather than fuel surcharges. - The UniFirst acquisition remains on track for a calendar year-end 2026 close, pending ongoing regulatory clearances in the U.S. and Canada. - Q1 results included $0.03 per share in transaction-related expenses for the UniFirst merger, which were excluded from adjusted EPS figures. - Interest expense guidance includes about $4 million for fiscal 2027 related to fees for the bridge loan secured for the UniFirst transaction. - SAP implementation for the Fire Protection segment remains in the pilot phase, with a rollout expected later this fiscal year to drive long-term administrative efficiency. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Growth is driven by new business productivity, strong customer retention, and increased cross-selling of products to existing clients. - Management emphasized that the vast majority of growth is volume-based, with pricing remaining consistent with prior years. - The extra workday in Q1 provided a 50 basis point benefit to operating margin and a 400 basis point boost to incremental margins. - For the full year, the workday differential is expected to impact operating margins by 10 to 15 basis points and incrementals by 100 to 125 basis points. - Management reported no changes in sales cycles or customer behavior, noting that outsourcing becomes more valuable to businesses during dynamic economic periods. - Cintas avoids passing through direct inflationary costs, instead focusing on extracting internal inefficiencies to maintain competitive pricing. - Record margins in Q1 were aided by a favorable revenue mix and the extra workday, but may moderate as the company invests in new technicians and market expansions. - Management remains committed to Fire Protection as a double-digit growth business despite quarter-to-quarter variability.

Cintas (CTAS) heads into its Q1 2027 earnings release and call on September 23, 2026, with investors watching how upcoming results align with prior revenue growth and recent share performance. Recent trading has been mixed for Cintas, with the share price up 16.3% over the past 90 days but easing 2.5% over the last month, while the 1-year total shareholder return is roughly flat and the 5-year total shareholder return of 115.8% points to strong longer term momentum. Scan beyond Cintas ahead of earnings and size up other service providers showing strong fundamentals with the hand picked list of solid balance sheet and fundamentals (23 results). Cintas looks like a high quality operator, and the recent 90 day surge against a flat 1 year return only sharpens the real issue: Is that solid business now fairly priced or stretched? Cintas last closed at $198.80, compared with a widely followed fair value estimate near $212. This frames the upcoming quarter around whether current pricing matches that narrative. See why 34 investors see Cintas as 6% undervalued. Result: Fair Value of $212.41 (UNDERVALUED) Still, the Cintas narrative could be knocked off course if remote and hybrid work steadily erode uniform demand, or if integration risks around UniFirst curb the expected benefits. Find out about the key risks to this Cintas narrative. The fair value work so far leans on future cash flows and suggests Cintas is trading about 5.9% below intrinsic value. A different angle tells a tougher story. On a P/E of about 40x, the stock is far richer than the Commercial Services industry at 18x and pricey against peers at 31x. The fair ratio sits near 26.8x, a level the market could move toward over time. That gap implies meaningful valuation risk if sentiment cools, even with a solid business underneath. Heading into earnings, which lens do you trust more: the cash flow math or the earnings multiple? See what the numbers say about this price — find out in our valuation breakdown. Feeling torn between the cash flow story and the rich P/E for Cintas is natural. Consider reviewing the full picture promptly, and weigh both the risks and the upside yourself by checking the 3 key rewards and 1 important warning sign. Do not stop your research with Cintas. Broaden your watchlist quickly with targeted screens that surface companies by quality, value, and resilience in just a few minutes. Target dependable income streams by reviewing 7 dividend fortresses that focus on higher yielding companies with the financial strength to support ongoing payouts. Hunt for mispriced quality by scanning the 16 high quality undiscovered gems that highlight strong fundamentals where attention still looks limited. Prioritize resilience in choppy markets by using the 30 resilient stocks with low risk scores that filter for businesses with sturdier risk profiles and balance sheets. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CTAS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]