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Cintas Stock Price Increases as Mergers Boost Expansion for Clothing Company
Main Aspects:
* Cintas credits its higher-than-anticipated quarterly figures to earnings from purchases.
* The clothing and work environment goods vendor also increased its annual profit prediction.
* Cintas recently concluded discussions with competitor UniFirst concerning its planned $5.3 billion purchase after the pair couldn’t concur on crucial conditions.
Cintas (CTAS) shares increased 9% Wednesday morning, surpassing the S&P 500, after the clothing and work environment goods vendor announced higher-than-anticipated numbers and increased its earnings prediction, profiting from business development.
The business reported financial year 2025 third-quarter earnings per share (EPS) of $1.13, compared to the $1.06 experts surveyed by Visible Alpha had anticipated. Income increased over 8% year-over-year to $2.61 billion, additionally over estimates.
Cintas emphasized that income development in the quarter was favorably affected by purchases, adding 0.9%, but was negatively impacted by foreign currency exchange rate variations, decreasing it by 0.4%.
Cintas Stops UniFirst Purchase Discussions
One purchase the business won’t be seeking after is its proposed $5.3 billion arrangement for competitor UniFirst (UNF), which was declared in January. Cintas expressed Monday that it had stopped discussions with UniFirst after the pair neglected to achieve a concurrence on crucial transaction conditions.
The business presently anticipates annual EPS of somewhere in the range of $4.36 and $4.40, up from its past projection of $4.28 to $4.34.
