FINWIRES · TerminalLIVE
FINWIRES

Cintas Raises Full-Year Outlook Following Fiscal First-Quarter Beat

By
Cintas Raises Full-Year Outlook Following Fiscal First-Quarter Beat

Cintas (CTAS) increased its full-year financial guidance as the uniform supplier reported better-than-expected fiscal first-quarter results.

The company now expects adjusted earnings in a range of $5.45 to $5.54 a share for fiscal 2027, up from its previous guidance of $5.36 to $5.50, it said Wednesday. Revenue is now pegged at $12.15 billion to $12.27 billion, compared with its prior outlook range of $12.10 billion to $12.25 billion.

The current consensus on FactSet is for non-GAAP EPS of $5.51 and sales of $12.22 billion for the year.

For the quarter ended August, adjusted EPS climbed nearly 16% year over year to $1.39, topping Wall Street's view for $1.35. Revenue advanced 11% to $3.01 billion, ahead of the Street's $2.98 billion estimate. On an organic basis, revenue grew 8.9%.

Sales from uniform rental and facility services improved 9.7% to $2.29 billion.

"We remain encouraged by the consistency of demand we are seeing," Cintas Chief Executive Todd Schneider said on an earnings conference call, according to a FactSet transcript.

The earnings outlook excludes nonrecurring transaction costs related to Cintas' pending acquisition of rival UniFirst (UNF), Schneider said in a statement. The company agreed to purchase UniFirst in a cash-and-stock deal worth about $5.5 billion announced in March.

Cintas is continuing to engage with the US Federal Trade Commission as it reviews the deal, according to Schneider. "We remain optimistic that the deal will close by the end of calendar 2026," the CEO said during the call.

Last month, RBC Capital Markets said it expected Cintas to raise its fiscal 2027 outlook driven by robust revenue growth in the first quarter.

The company's shares were down 1.1% in Wednesday afternoon trade. So far in 2026, the stock has gained 4.3%.

Earlier this month, facility services provider ABM Industries (ABM) tightened its fiscal 2026 earnings outlook. Aramark (ARMK) lifted its full-year organic revenue growth outlook last month following better-than-expected fiscal third-quarter results.

Price: $196.60, Change: $-2.20, Percent Change: -1.11%

What else is happening in US Markets?

Australian Private Sector Growth Hits Three-Month Low Amid Weakness in Manufacturing
US Markets

Australian Private Sector Growth Hits Three-Month Low Amid Weakness in Manufacturing

Australia's private sector posted only moderate expansion in September as a fresh decline in export business curtailed growth in overall new orders.The headline seasonally adjusted S&P Global Flash Australia PMI Composite Output Index fell to 50.8 in September from 52.7 in the previous month, the index provider said Wednesday.While the latest reading is above the 50 mark that separates expansion from contraction, it also marks the weakest growth rate across the third quarter, driven by softer demand particularly in the manufacturing space.The overall volume of new business improved for a third straight month, although the September pace of expansion was the slowest in this period, held back by a renewed decline in new manufacturing orders. At the same time, new export orders slid for the fifth time in six months, also due to weakness in manufacturing, S&P Global said.The Flash Australia Manufacturing PMI reading fell to 49.3 in September from 52 in August, while the Flash Australia Manufacturing PMI Output Index retreated further into contraction territory at 46.4, down from 49.6.Services was a key growth engine, but even in this sector, the upturn was less pronounced as the Flash Australia Services PMI Business Activity Index fell to 51.4 from 53.2 in August.There was more bitter news on the price front, as the rate of input price inflation moved up to its highest level in three months, and the rise in output charges was more pronounced than in August.The results coincide with business confidence deteriorating to its weakest in three months, falling further below the series average in September amid concerns related to cost pressures, market demand, and customer retention. This led to a reduction in private sector employment across Australia for the first time since May.

ASX 200
Update: Nasdaq Composite Hits New Peak as Oil Retreats
US Markets

Update: Nasdaq Composite Hits New Peak as Oil Retreats

(Updates with market moves at the end of the day, and other changes, if any.)The Nasdaq Composite advanced to a fresh all-time high on Tuesday, while oil prices dipped after President Donald Trump said the US held talks with Iran.The Nasdaq rose 0.5% to 27,244.28, recording a new closing high for the second day in a row. The Dow Jones Industrial Average fell 0.4% to 51,863.69, while the S&P 500 ended little changed at 7,764.64. Among sectors, materials paced the gainers, while financials led the laggards.West Texas Intermediate crude oil was down 2.7% at $89.84 a barrel in Tuesday late-afternoon trade. Brent dropped 2% to $98.35. Both benchmarks were on track for their fifth consecutive day of declines.Trump said that members of his administration had "a very good meeting" with an Iranian delegation to the UN General Assembly in New York on Tuesday, multiple news outlets reported. The talks lasted three hours.Iran has offered to reopen the crucial Strait of Hormuz within seven days if the US eases its military pressure, Reuters and Japan's Kyodo News reported, citing a senior Iranian government official.A senior Iranian official told MS Now, CNBC's Versant Media partner, that the Reuters and Kyodo reports were not true.Saudi Arabia has restarted operations at its East-West pipeline following recent drone attacks, Reuters reported Tuesday, citing sources. The pipeline could resume exports from the Yanbu port later Tuesday.Treasury yields were lower, with the 10-year rate down 0.8 basis point at 4.96% and the two-year rate falling 1.2 basis points to 4.74%.Inflationary pressures from tariffs and the Middle East conflict may persist for a while before their impact fades, Richmond Fed President Tom Barkin said Tuesday.Prices have been above the Federal Reserve's 2% goal for more than five years now, making inflation as "our troublemaker," Barkin said in remarks for an event in Baltimore.The Fed's next interest rate increase could come as early as October as higher oil prices threaten to push inflation farther away from the US central bank's 2% goal, Oxford Economics said.In company news, On Holding's (ONON) US-listed shares climbed 7.6% after the Swiss sportswear company outlined its mid-term financial targets and reiterated its outlook for 2026.AutoZone (AZO) reported fiscal fourth-quarter revenue and same-store sales growth below market expectations on Tuesday amid a challenging environment, although the auto parts retailer's earnings topped estimates. The stock rose 3.3%.Spot gold edged up 0.4% to $4,361.38 per troy ounce, while silver jumped 2% to $67.76 per ounce.

Dow JonesNasdaq CompositeS&P 500$AZO$ONON
Kinder Morgan Poised to Benefit From Higher Commodity Prices, RBC Says
US Markets

Kinder Morgan Poised to Benefit From Higher Commodity Prices, RBC Says

Kinder Morgan's (KMI) third-quarter core earnings should get a boost from favorable commodity prices, RBC Capital Markets said in a note Tuesday.The brokerage raised the energy infrastructure company's adjusted earnings before interest, taxes, depreciation and amortization forecast to $2.13 billion from $2.08 billion. Kinder Morgan is scheduled to report third-quarter results on Oct. 21.RBC pegged West Texas Intermediate crude prices at $84.50 per barrel in the third quarter so far, up from the prior $84 estimate. Kinder Morgan's carbon dioxide segment includes oil and gas production, though 90% of its oil output s hedged, RBC analyst Elvira Scotto said."We believe (Kinder Morgan) enters (third-quarter) with strong momentum driven by commodity price tailwinds and operational execution," Scotto said.The brokerage raised its price target on Kinder Morgan's stock to $36 from $35 and reiterated its sector perform rating.In August, Kinder Morgan partnered with Phillips 66 (PSX) and HF Sinclair (DINO) on Western Gateway, a $5 billion, 1,300-mile pipeline system expected to be completed in 2029.The company owns a 35.1% stake in Western Gateway and is contributing $1.5 billion in assets, along with $250 million in cash. "Western Gateway adds $300 (million) to the backlog with mid-teens unlevered after-tax returns," Scotto said.RBC expects Kinder Morgan's backlog to grow by an additional $400 million in the near term.The company's shares fell 1.4% on Tuesday, but have gained nearly 14% this year.In August, natural gas distributor Williams (WMB) reported second-quarter earnings in line with Wall Street's estimates and topped sales expectations.

$KMI$WMB