Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, September 29, 2017

Article Excerpt

CINTAS CORP., $144.28, Nasdaq symbol CTAS, designs and makes uniforms, then sells them to one million businesses, mainly in North America. It also offers related products and services such as office cleaning and first-aid kits. In March 2017, Cintas completed its acquisition of Minnesota-based G&K Services Inc. That firm supplies corporate uniforms and other services. It has 165 facilities across the U.S. and Canada. Cintas paid $2.2 billion, which included G&K’s debt. The company expects eliminating overlapping operations will let it cut between $130 million and $140 million from its annual costs by the end of the fourth year. As a result of that purchase, Cintas’s revenue in its fiscal 2018 first quarter, ended August 31, 2017, jumped 27.2%, to $1.61 billion from $1.27 billion a year earlier. That beat the consensus forecast of $1.57 billion. If you exclude the contribution from G&K and foreign currency rates, revenue rose 8.3% in the quarter. Rising U.S. employment continues to spur demand for the company’s uniforms…