Uniform rental firm Cintas forecasts annual profit above estimates
July 18 (Reuters) -Uniform rental firm Cintas Corp CTAS.O forecast annual profit largely above expectations on Thursday, banking on steady demand forits pricier products such as cleaning supplies to shield margins from rising input costs.
Shares of the company were up about 2% in premarket trading.
Steady employment growth in recession-resilient sectors such as healthcare, government and education, the company's primary customer base, supported revenue amid a wider slowdown in job growth in the United States.
Cintas alsobenefited from cross-selling opportunities through its diverse array of products such as first-aid kits, entrance mats, hygiene supplies and shop towels.
Modest price hikes helped the company's gross margin as a percentage of revenue rise 150 basis points to 49.2%, offsetting the impact of increasedenergy costs in March and April.
For the full year,Cintas expects earnings per share in the range of $16.25 to $16.75, with the midpoint slightly aboveanalysts' estimates of $16.43, according to LSEG data.
The company reported profit of $3.99 per share for the quarter ended May 31, beating expectations of $3.79 per share.
The Mason, Ohio-based company posted quarterly revenue of $2.47 billion, in line with estimates, and forecast annual revenue below expectations.
Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Devika Syamnath
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