Stock Market News & Stocks to Watch from StraightStocks » Cintas Corp;

Cintas’ Guidance Disappoints – Analyst Blog

Zacks Market Commentaries — Wed, 17 Feb 2010 15:31:20 +0000

After reporting second-quarter earnings, which fell below expectations, Cintas Corp. (CTAS) now provided a lower-than-expected guidance for the second half of fiscal 2010. The company has given its revenue and earnings outlook for the third and fourth quarter of fiscal 2010, although it did not provide any guidance earlier due to uncertainties regarding job recovery.

For the third quarter, the company forecasts earnings in the range of 29–31 cents per share on revenues of $850–$860 million, compared to prior-year earnings of 47 cents per share on revenues of $909 million. For the fourth quarter the company expects revenue in the range of $870–$890 million and earnings of 30–34 cents per share, compared to revenue of $879 million and earnings of 38 cents per share in the fourth quarter of fiscal 2009. Cintas expects a very slow improvement in the job market in the fourth quarter.

Earnings estimate for the third as well as fourth quarter was lower than analysts’ expectations, which according to the company are too optimistic. The Zacks Consensus Estimate for the third and fourth quarter is 38 cents and 41 cents, respectively. None of the 10 analysts, covering the stock, have revised their estimates in the last 30 days.

Increasing job losses are adversely impacting the company’s top-line. Approximately two-thirds of the job losses occurred in traditional uniform-wearing industries, and Cintas derives more than 80% of its revenue from Uniform Direct Sales and Rental Uniform and Ancillary Products segments.

Being a market leader in its business, Cintas is confident of posting strong growth on economic recovery. The company is on the lookout for the right acquisition opportunities at attractive valuations to expand its presence both in the domestic and international markets.
Read the full analyst report on "CTAS"
Zacks Investment Research

Unemployment Weighs Down Cintas – Analyst Blog

Zacks Market Commentaries — Fri, 08 Jan 2010 21:34:16 +0000

After posting a positive earnings surprise in the first quarter of fiscal 2010, Cintas Corp. (CTAS) recently reported lower-than-expected earnings for the second quarter. The company posted second-quarter earnings of 37 cents per share compared to the Zacks Consensus Estimate of 43 cents. The company’s sales were down 10% year over year due to significant job losses in the economy since the start of recession.

Increasing job losses are adversely impacting the company’s top-line. Cintas pointed out that the U.S. economy has lost jobs for 23 consecutive months, with 7.2 million jobs lost total. Its impact on the company has been drastic, as approximately two-thirds of these job losses occurred in traditional uniform-wearing industries, and Cintas derives more than 80% of its revenue from Uniform Direct Sales and Rental Uniform and Ancillary Products segments.

For fiscal 2010, the Zacks Consensus Estimate for Cintas is $1.63, compared to $1.83 reported in fiscal 2009. In the last month, the Zacks Consensus Estimate has fallen by 10 cents, as 7 out of 10 analysts covering the stock have lowered their estimates and just one analyst has raised the estimate. The Zacks Consensus Estimate for fiscal 2011 dropped 15 cents in the last 30 days as 8 analysts have reduced their estimates, while none have raised it.

With a majority of the analysts lowering their estimates, the Zacks Rank for Cintas fell to #5, or a short-term rating of Strong Sell.

However, we maintain our long-term recommenadation of Neutral for the stock as we believe that Cintas is well positioned to capitalize on economic recovery, given its strong market position and solid balance sheet.

The company had $342 million in cash and marketable securities and no short-term debt as of November 30, 2009. Given its financial strength, Cintas is on the lookout for the right acquisition opportunities at attractive valuations to further strengthen its position in the domestic as well as international markets.

Read the full analyst report on "CTAS"
Zacks Investment Research

Bearish MACD for Cintas – Zacks Tale of the Tape

Zacks Market Commentaries — Fri, 08 Jan 2010 16:16:57 +0000

Cintas Corp.’s (CTAS) MACD indicator has crossed over to bearish territory with a reading of -0.6650. The Zacks #4 Rank (“Sell") stock decreased slightly to $26.57 in morning trade. The Zacks Consensus Estimate on the company’s earnings for the year ending May 2010 has reduced by 10 cents over the past month to $1.63 per share.
"CTAS" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Bearish MACD for Cintas – Zacks Tale of the Tape

Zacks Market Commentaries — Mon, 28 Dec 2009 15:54:00 +0000

Cintas Corp.’s (CTAS) MACD indicator has moved into bearish territory with a reading of -0.3961. The Zacks #4 Rank (“Sell") stock declined more than 1% to $26.10 in morning trade. The Zacks Consensus Estimate on the company’s full-year earnings has reduced by 10 cents over the past week to $1.63 per share.
"CTAS" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Cintas Beats Zacks Estimate – Analyst Blog

Zacks Market Commentaries — Thu, 24 Sep 2009 14:31:53 +0000

Yesterday, Cintas Corp. (CTAS) declared first quarter fiscal 2010 financial results. Quarterly revenue of $891.6 million declined 11% year-over-year but was up 1.5% sequentially. The yearly decline in revenue was primarily due to an extremely challenging economic environment that resulted in massive job cuts in almost all businesses.

On a GAAP basis, net income was $54 million or 35 cents per share, compared to a net income of $78.6 million or 51 cents in the prior-year quarter and a net income of $4.1 million or 3 cents per share in the previous quarter. However, Cintas’ quarterly adjusted (excluding special items) profit of $66 million or 43 cents per share beats the Zacks Consensus Estimate of 40 cents.

Quarterly gross margin was 42.9%, up from 42.4% a year ago and 38.1% in the previous quarter. This reflects aggressive cost-cutting measures taken by management during the past year. Operating expenses were $283.9 million compared to $287.3 million in the prior-year quarter and $312.8 million in the previous quarter. Management has streamlined the cost structure to improve productive efficiency.

At the end of the first quarter, Cintas had $357.9 million of cash and marketable securities on its balance sheet compared to $250.1 million at the end of the previous quarter. Total debt was $786.5 million, almost the same as the $786.7 million at the end of the previous quarter. Debt-to-capitalization ratio was 24.5% at the end of the reported quarter, compared to 29.3% at the end of the year-ago quarter and 24.9% at the end of the previous quarter.

During the quarter, Cintas generated cash from operation of $144.9 million compared to just $88.3 million in the prior-year quarter. Quarterly free cash flow (cash flow from operation less capital expenditure) was $120.1 million compared to $33.9 million in the year-ago quarter.

Rental Uniforms & Ancillary Products Segment

Quarterly revenue was $655.6 million compared to $721.4 million in the prior-year quarter and $647.5 million in the previous quarter. This segment continues to generate the bulk (74%) of total revenue. Gross margin was 44.6% compared to 43.5% in the year-ago quarter and 42.3% in the previous quarter.

Other Services Segment

Other services consist of Uniform direct sales; first aid, safety & fire protection and document management. Quarterly revenue was $235.9 million compared to $280.8 million in the prior-year quarter and $231.2 million in the previous quarter. This segment generated the rest 26% of total revenue. Gross margin was 38.2% compared to 39.5% in the year-ago quarter and 26.3% in the previous quarter.
Read the full analyst report on "CTAS"
Zacks Investment Research

Earnings Preview for Jul 13 – 17 – Earnings Preview

Charles Rotblut — Fri, 10 Jul 2009 05:00:00 +0000

Six Dow components are scheduled to report as large-cap stocks dominate the first big week of earnings season. The 6 companies are Bank of America (BAC), General Electric (GE), Intel (INTC), IBM (IBM), Johnson & Johnson (JNJ) and JPMorgan Chase (JPM).

Joining them will be 25 other members of the S&P 500, including Goldman Sachs (GS) and Google (GOOG). Overall, 83 companies are scheduled to report. Though the total size of the calendar is not large, its composition could significantly influence market direction.

Minutes from the June Fed meeting will be released on Wednesday afternoon and could lead to volatility in the bond markets.

Monday: June Treasury Budget
Tuesday: June Producer Price Index (PPI), June retail sales, May business inventories
Wednesday: June Consumer Price Index (CPI), July Empire State (NY) Index, June industrial production and capacity utilization, Fed minutes, weekly crude inventories
Thursday: July Phili Fed survey, July National Association of Homebuilders Index, weekly initial jobless claims
Friday: June housing starts and building permits

No Fed officials are currently scheduled to speak.

July stock options expire on Friday.

Wednesday could be the most volatile day, given the large amount of earnings and economic news. Overall, we'll be looking for positive earnings surprises, confirmation that the second half will be better than the first half and buying in reaction to good news.

Companies That Could Issue Positive Earnings Surprises

Four of 15 covering brokerage analysts have increased their second-quarter profit projections on W.W. Grainger (GWW) over the past few weeks. As a result, the consensus estimate now calls for per share earnings of $1.15 per share. The most accurate estimate is 2 cents higher at $1.17 per share. GWW has topped expectations for 5 consecutive quarters.

Recent revisions by 3 brokerage analysts have pushed the second-quarter consensus estimate for Google (GOOG) up 4 cents to $4.35 per share. The most accurate estimate is even more bullish at $4.40 per share. GOOG has topped expectations for 3 consecutive quarters. Google is scheduled to report on Thursday, Jul 16, after the close of trading.

Five analysts raised their second-quarter estimates on Intel (INTC) within the past 30 days. Though the changes were not enough to budge the consensus estimate from its current level of 7 cents per share, the revisions suggest there could be upside. Both Micron (MU) and National Semiconductor (NSM) have already topped expectations and Texas Instruments (TXN) raised its second-quarter guidance. Plus, INTC has topped estimates during 4 out of the last 5 quarters. Intel is scheduled to report on Tuesday, Jul 14, after the close.

One analyst just raised his second-quarter profit forecast on Wolverine World Wide (WWW). The revision pushed the consensus estimate a penny higher to 26 cents per share. The most accurate estimate is 3 cents higher at 29 cents per share. WWW has topped expectations during 3 out of the last 4 quarters. Wolverine Worldwide is scheduled to report on Wednesday, Jul 15, before the start of trading.

Companies That Could Issue Negative Earnings Surprises

The ongoing recession is having an impact on Harley-Davidson (HOG). The motorcycle manufacturer has missed expectations for 3 consecutive quarters and analysts are bracing for more bad news. During the past 30 days, the second-quarter consensus estimate has declined 2 cents to 26 cents per share. The most accurate estimate is even more bearish at 24 cents per share. Harley-Davidson is scheduled to report on Thursday, Jul 16, before the start of trading.

Charles Rotblut, CFA is the senior market analyst for Zacks.com.

Earnings Calendar

Here is a list of companies that we have confirmed will report during the week of Jun 13 - Jul 17¹. Prices are as of Thursday's, Jul 9, market close.

Company	Stock	Zacks Estimate	Year Ago EPS	Last Qtr Surprise	Date	Time	Price
Csx Corp	CSX	$0.63	$0.89	14.8%	7/13	AMC	$31.84
Fastenal	FAST	$0.33	$0.51	(2.9%)	7/13	BTO	$30.64
Gsc Investment	GNV	$0.38	$0.39	11.9%	7/13	AMC	$2.53
Merix Corp	MERX	($0.39)	($0.17)	(71.4%)	7/13	N/A	$0.75
Novellus Sys	NVLS	($0.38)	$0.06	7.8%	7/13	AMC	$17.77
Bank Ozarks	OZRK	$0.53	$0.51	5.8%	7/13	AMC	$22.11
Aar Corp	AIR	$0.47	$0.51	(6.5%)	7/14	AMC	$14.44
Altera Corp	ALTR	$0.16	$0.32	6.3%	7/14	AMC	$15.86
Goldman Sachs	GS	$3.24	$4.58	N/A	7/14	BTO	$143.21
Intel Corp	INTC	$0.07	$0.29	266.7%	7/14	AMC	$16.02
Johnson & Johns	JNJ	$1.11	$1.18	4.1%	7/14	BTO	$56.69
Ocean Power Tec	OPTT	($0.46)	N/A	34.0%	7/14	N/A	$5.29
Palm Harbor Hms	PHHM	($0.30)	($0.05)	20.7%	7/14	AMC	$2.03
Xoma Ltd	XOMA	($0.08)	($0.16)	500.0%	7/14	AMC	$0.75
Yum! Brands Inc	YUM	$0.43	$0.45	20.00%	7/14	AMC	$35.00
Abbott Labs	ABT	$0.88	$0.84	4.3%	7/15	BTO	$45.93
Acergy Sa	ACGY	$0.16	$0.35	25.0%	7/15	DMT	$9.40
Adtran Inc	ADTN	$0.28	$0.34	4.3%	7/15	BTO	$20.74
Asml Holding Nv	ASML	($0.33)	$0.44	(16.1%)	7/15	BTO	$21.67
Commerce Bancsh	CBSH	$0.39	$0.73	(15.7%)	7/15	BTO	$31.72
Crown Hldgs Inc	CCK	$0.66	$0.61	33.3%	7/15	AMC	$23.60
Cintas Corp	CTAS	$0.36	$0.58	(2.1%)	7/15	AMC	$21.73
Gannett Inc	GCI	$0.37	$1.02	8.7%	7/15	BTO	$3.19
Grainger W W	GWW	$1.15	$1.48	16.8%	7/15	BTO	$78.31
Kinder Morg Eng	KMP	$0.28	$0.64	(57.1%)	7/15	N/A	$51.16
Landstar System	LSTR	$0.40	$0.56	(6.9%)	7/15	AMC	$34.45
Lufkin Inds	LUFK	$0.42	$1.36	(47.9%)	7/15	BTO	$38.95
Medtox Scientif	MTOX	$0.10	$0.22	(28.6%)	7/15	BTO	$8.95
Knight Cap Gp	NITE	$0.36	$0.32	6.4%	7/15	BTO	$16.71
Polycom Inc	PLCM	$0.22	$0.24	(35.0%)	7/15	AMC	$20.07
Resources Cnctn	RECN	$0.04	$0.35	(28.6%)	7/15	AMC	$16.55
Stanley Furn Co	STLY	($0.20)	($0.01)	(340.0%)	7/15	AMC	$10.82
Texas Inds	TXI	($0.04)	$0.49	1350.0%	7/15	BTO	$29.84
Univl Fst Prods	UFPI	$0.43	$0.61	71.4%	7/15	AMC	$32.24
Worthington Ind	WOR	($0.01)	$0.72	500.0%	7/15	BTO	$11.19
Wolverine World	WWW	$0.26	$0.33	36.7%	7/15	BTO	$21.16
Xilinx Inc	XLNX	$0.20	$0.36	11.1%	7/15	AMC	$19.46
Angiodynamics	ANGO	$0.15	$0.20	25.0%	7/16	AMC	$12.34
Amphenol Corp-A	APH	$0.42	$0.61	2.5%	7/16	BTO	$31.54
Aracruz Cel-Adr	ARA	($1.19)	$0.69	N/A	7/16	BTO	$14.82
Assoc Banc Corp	ASBC	($0.16)	$0.37	12.0%	7/16	DMT	$12.18
Aptargroup Inc	ATR	$0.40	$0.64	2.7%	7/16	AMC	$32.42
Baxter Intl	BAX	$0.94	$0.85	2.5%	7/16	BTO	$52.64
Biogen Idec Inc	BIIB	$0.97	$0.91	5.0%	7/16	BTO	$45.43
Badger Meter	BMI	$0.54	$0.48	23.7%	7/16	AMC	$38.26
Cubist Pharm	CBST	$0.28	$0.34	(7.1%)	7/16	AMC	$16.79
Courier Corp	CRRC	$0.23	$0.25	(37.5%)	7/16	BTO	$14.50
Cypress Semicon	CY	($0.39)	$0.17	(26.1%)	7/16	BTO	$8.77
Cytec Inds Inc	CYT	$0.01	$1.20	(80.7%)	7/16	AMC	$18.28
Datalink Corp	DTLK	$0.02	$0.08	16.7%	7/16	AMC	$4.21
Fairchild Semi	FCS	($0.12)	$0.17	3.0%	7/16	BTO	$7.06
Google Inc-Cl A	GOOG	$4.35	$3.92	22.6%	7/16	AMC	$410.39
Genuine Parts	GPC	$0.62	$0.81	14.3%	7/16	BTO	$32.56
Harley-Davidson	HOG	$0.27	$0.95	(3.9%)	7/16	BTO	$15.67
Home Bancshares	HOMB	$0.20	$0.28	16.7%	7/16	BTO	$18.99
Intl Bus Mach	IBM	$2.03	$1.98	1.8%	7/16	N/A	$102.08
Insteel Inds	IIIN	($0.04)	$0.97	(2250.0%)	7/16	BTO	$7.83
Jpmorgan Chase	JPM	$0.18	$0.57	29.0%	7/16	BTO	$33.62
Knoll Inc	KNL	$0.21	$0.49	52.6%	7/16	BTO	$7.19
Marriott Intl-A	MAR	$0.21	$0.51	71.4%	7/16	BTO	$19.72
Mb Financl Inc	MBFI	($0.31)	$0.42	(3033.3%)	7/16	BTO	$11.08
Mission West	MSW	$0.14	$0.12	7.7%	7/16	N/A	$6.40
Nokia Cp-Adr A	NOK	$0.17	$0.56	(7.1%)	7/16	BTO	$14.28
Novartis Ag-Adr	NVS	$0.86	$0.99	0.0%	7/16	N/A	$40.05
Nexen Inc	NXY	$0.30	$0.70	766.7%	7/16	BTO	$19.82
Peoples Utd Fin	PBCT	$0.07	$0.13	(20.0%)	7/16	AMC	$15.12
Polaris Indus	PII	$0.48	$0.72	30.0%	7/16	BTO	$31.07
Ppg Inds Inc	PPG	$0.76	$1.62	53.8%	7/16	BTO	$42.11
Renaissnce Lrng	RLRN	$0.11	$0.12	44.4%	7/16	AMC	$8.94
Simmons First A	SFNC	$0.31	$0.42	8.8%	7/16	BTO	$26.28
Sonoco Products	SON	$0.36	$0.62	(3.3%)	7/16	BTO	$23.16
Umpqua Hldgs Cp	UMPQ	($0.07)	$0.17	(2400.0%)	7/16	BTO	$7.62
Usa Truck Inc	USAK	$0.03	$0.21	(200.0%)	7/16	BTO	$13.59
Smith (Ao) Corp	AOS	$0.54	$1.03	(29.3%)	7/17	BTO	$31.87
Bank Of Amer Cp	BAC	$0.17	$0.72	940.0%	7/17	BTO	$11.97
Bb&T Corp	BBT	$0.22	$0.69	45.5%	7/17	BTO	$20.86
Citigroup Inc	C	($0.05)	($0.49)	25.0%	7/17	BTO	$2.69
First Hrzn Natl	FHN	($0.32)	($0.10)	(62.5%)	7/17	BTO	$11.38
Genl Electric	GE	$0.24	$0.54	13.0%	7/17	BTO	$10.86
Mattel Inc	MAT	$0.02	$0.03	0.0%	7/17	BTO	$15.45
Marshall&Ilsley	MI	($0.68)	($1.52)	(37.5%)	7/17	BTO	$4.50
Prosperity Bcsh	PRSP	$0.50	$0.52	1.9%	7/17	BTO	$28.94
Webster Finl Cp	WBS	($0.43)	$0.42	(112.0%)	7/17	BTO	$7.86

BTO = Before The Market Open, AMC = After The Market Close

¹Some of the companies listed in the earnings calendar may not be in the Zacks Rank universe.

Zacks Investment Research

Zacks #5 Rank Additions for Monday – Zacks Tale of the Tape

Zacks Market Commentaries — Mon, 15 Jun 2009 12:12:19 +0000

Here are the stocks added to the Zacks #5 Rank ("strong sell") List today:

Agrium Inc (AGU)
Benchmark Electronics Inc (BHE)
Blyth Inc (BTH)
Brandywine Realty Trust (BDN)
Build-A-Bear Workshop Inc (BBW)
Callaway Golf Co (ELY)
Ciena Corp (CIEN)
Cincinnati Financial Corp (CINF)
Cintas Corp (CTAS)
Denison Mines Corp (DNN)
DRI Corp (TBUS)
Ethan Allen Interiors Inc (ETH)
Fresh Del Monte Produce Inc (FDP)
Georgia Gulf Corp (GGC)
Harsco Corp (HSC)
IMS Health Inc (RX)
Independent Bank Corp (IBCP)
Integra Bank Corp (IBNK)
Irwin Financial Corp (IFC)
ITT Corp (ITT)
Kelly Services Inc (KELYA)
Kinder Morgan Energy Partners LP (KMP)
Legacy Bancorp Inc (LEGC)
Liberty Property Trust (LRY)
LSI Industries Inc (LYTS)
MSC Industrial Direct Co Inc (MSM)
Norfolk Southern Corp (NSC)
The New York Times Co (NYT)
Old Dominion Freight Line (ODFL)
Park Electrochemical Corp (PKE)
Penford Corp (PENX)
Reliance Steel & Aluminum (RS)
Sanmina-SCI Corp (SANM)
The St. Joe Co (JOE)
Stanley Furniture Company Inc (STLY)

View the entire Zacks #5 Rank List.

Zacks #5 Rank Additions for Tuesday – Zacks Tale of the Tape

Zacks Market Commentaries — Tue, 09 Jun 2009 12:04:58 +0000

Here are the stocks added to the Zacks #5 Rank ("strong sell") List today:

ABB Ltd (ABB)
Actuant Corp (ATU)
ATMI Inc (ATMI)
BancTrust Financial Group Inc (BTFG)
Benchmark Electronics Inc (BHE)
Blyth Inc (BTH)
BRT Realty Trust (BRT)
Cincinnati Financial Corp (CINF)
Cintas Corp (CTAS)
Cleco Corp (CNL)
CONMED Corp (CNMD)
Dover Saddlery Inc (DOVR)
Enterprise Financial Services Corp (EFSC)
Ethan Allen Interiors Inc (ETH)
Fairpoint Communications Inc (FRP)
Fuel Tech Inc (FTEK)
Hartford Financial Services (HIG)
Insteel Industries Inc (IIIN)
INX Inc (INXI)
FirstService Corp (FSRV)
JA Solar Holdings Co Ltd (JASO)
JDA Software Group Inc (JDAS)
Live Nation Inc (LYV)
LoJack Corp (LOJN)
MSC Industrial Direct Co Inc (MSM)
Open Text Corp (OTEX)
Pennichuck Corp (PNNW)
Sanmina-SCI Corp (SANM)
SJW Corp (SJW)
Stanley Furniture Company Inc (STLY)
The Talbots Inc (TLB)
TriCo Bancshares (TCBK)
Tucows Inc (TCX)
US Home Systems Inc (USHS)
Willbros Group Inc (WG)
Yadkin Valley Financial Corp (YAVY)

View the entire Zacks #5 Rank List.

Zacks #5 Rank Additions for Wednesday – Zacks Tale of the Tape

Zacks Market Commentaries — Wed, 03 Jun 2009 12:37:32 +0000

Here are the stocks added to the Zacks #5 Rank ("strong sell") List today:

Accuride Corp (AURD)
Argo Group International Holdings Ltd (AGII)
ATMI Inc (ATMI)
BancTrust Financial Group Inc (BTFG)
Benchmark Electronics Inc (BHE)
Brasil Telecom SA (BTM)
China Security & Surveillance Tech Inc (CSR)
Cintas Corp (CTAS)
Community Bancorp (CBON)
CRM Holdings Ltd (CRMH)
Cynosure Inc (CYNO)
Dayton Superior Corp (DSUPQ)
Erie Indemnity Co (ERIE)
Fairpoint Communications Inc (FRP)
First Security Group Inc (FSGI)
Fuel Tech Inc (FTEK)
The Hain Celestial Group Inc (HAIN)
Hartford Financial Services (HIG)
Innophos Holdings Inc (IPHS)
INX Inc (INXI)
JDA Software Group Inc (JDAS)
LoJack Corp (LOJN)
Mercer International Inc (MERC)
MetroCorp Bancshares Inc (MCBI)
Montpelier Re Holdings Ltd (MRH)
Open Text Corp (OTEX)
Pacific Ethanol Inc (PEIX)
Physicians Formula Holdings Inc (FACE)
Rockwood Holdings Inc (ROC)
Royal Bank of Canada (RY)
RRSat Global Communications Network Ltd (RRST)
Stanley Furniture Company Inc (STLY)
Streamline Health Solutions Inc (STRM)
Superior Well Services Inc (SWSI)
Terra Industries Inc (TRA)
Timberland Bancorp Inc (TSBK)
Trico Marine Services Inc (TRMA)
Votorantim Celulose e Papel SA (VCP)
Zygo Corp (ZIGO)

View the entire Zacks #5 Rank List.

Cintas Takes a Hit – Zacks Tale of the Tape

Zacks Market Commentaries — Fri, 19 Dec 2008 15:39:23 +0000

Cintas Corp. (CTAS) reported second-quarter earnings that missed the consensus estimate and withdrew its 2009 guidance, citing uncertainties that were likely to continue through the rest of the year. The disapoitning performance and bleak outlook sent shares down nearly 12%.

In the latest quarter, the supplier of corporate uniforms said net income fell 13% to $71.8 million, or 47 cents per share, hurt by higher energy and commodity costs in a tough economic environment. Average forecast was pegged at 55 cents a share.

Cintas also withdrew its full-year profit guidance of $2.22 to $2.30 per share on revenue of $4.10 billion to $4.20 billion. The company said its markets were experiencing extremely volatile conditions that were largely outside its control.

Meanwhile, the Labor Department said Cintas would have to pay a fine of $3 million to resolve 6 safety-related cases, including the death of a worker last year. The penalty is probably the largest ever faced by a company from the service industry.

Shares of the company were trading down 11.9% at $22.50 at noon on the NASDAQ.

"CTAS" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Earnings Preview for Dec 15 – 19 – Earnings Preview

Charles Rotblut — Fri, 12 Dec 2008 00:00:00 +0000

No companies are expected to top expectations. Best Buy Co., Inc. (BBY) and Goldman Sachs Group, Inc. (GS) could miss estimates.

This will be the last busy week of the year for the financial markets. Among the scheduled events are early fourth-quarter earnings reports, a Fed meeting and quadruple witching.

The 49 companies scheduled to release fourth-quarter results include 15 S&P 500 members. The companies most likely to attract attention are Best Buy Co, Inc. (BBY), FedEx Corporation (FDX), Goldman Sachs Group, Inc. (GS), Lennar Corporation (LEN) and Oracle Corporation (ORCL).

Carmax, Inc. (KMX) conference call could have more listeners than usual given the Senate's failure to pass an automotive rescue package. KMX will report on Friday, Dec 19, before the start of trading.

The Fed will hold a one-day meeting on Tuesday, Dec 16. Futures are calling for a 75-basis point cut. (A 50-basis point cut is not out of the realm of possibilities, however.)

The Federal Reserve's web site is not listing any upcoming speeches for Fed officials.

Key economic data will include industrial production and utilization, housing starts and the Phili Fed survey.

Monday: December Empire State index, November industrial production and capacity utilization
Tuesday: November consumer price index (CPI), November housing starts, November building permits, Fed meeting
Wednesday: weekly crude inventories
Thursday: December Philadelphia Fed survey, November Leading Indicators, weekly initial jobless claims

Friday will be a quadruple witching day. Both options and futures contracts will expire, which can cause additional volatility.

Unscheduled events remain a wildcard, particularly any changes involving the Big 3.

Companies That Could Issue Positive Earnings Surprises

Trends in earnings estimate revisions do not suggest any of the companies reporting will top expectations. This is partially due to the fact that several of the companies have lowered guidance.

Companies That Could Issue Negative Earnings Surprises

Last month, Best Buy (BBY) cut its guidance for the remainder of fiscal 2009, which ends in February. Citing "significant changes in the consumer environment," the company warned that same-store sales could be down 1% to 8%.

Nearly all of the covering brokerage analysts cut their projections in response, lowering the fiscal third-quarter consensus estimate by 13 cents to 27 cents per share. The most accurate estimate is more bearish at 25 cents per share. Investors should also note that the electronic retailer's fiscal second-quarter results were 9 cents below expectations. Best Buy is scheduled to report on Tuesday, Dec 16, before the start of trading.

After nearly a perfect record of topping expectations, Goldman Sachs Group, Inc. (GS) missed third-quarter estimates by 8 cents. The trend in earnings estimates suggests that the financial firm could disappoint investors again. During the past 30 days, 11 of the 16 covering brokerage analysts have cut their fiscal fourth-quarter estimates. The reductions caused the consensus estimate to plunge to a projected loss of $3.37 per share from a profit forecast of 84 cents per share. The most accurate estimate is more bearish at a loss of $3.61 per share. Goldman Sachs is scheduled to report on Tuesday, Dec 16, before the start of trading.

Charles Rotblut, CFA is the senior market analyst for Zacks.com. He can be reached at crotblut@zacks.com.

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Earnings Calendar

Here is a list of companies that we have confirmed will report during the week of Dec 15 - 19¹. Prices are as of Thursday's, Dec 11, market close.

Company	Ticker	Zacks Consensus Estimate	Year Ago Actual	Last Qtr Surprise	Report Date	Report Time	Price
ABM Industries	ABM	$0.37	$0.30	(22.0%)	12/15/2008	AMC	$17.81
CPI Intl Inc	CPII	$0.37	$0.39	(5.7%)	12/15/2008	AMC	$9.92
Imperial Sugar	IPSU	($0.73)	$0.65	(5.0%)	12/15/2008	BTO	$12.56
Particle Drillg	PDRT	($0.08)	($0.06)	(16.7%)	12/15/2008	BTO	$0.16
Smith & Wesson	SWHC	$0.04	$0.07	(28.6%)	12/15/2008	AMC	$2.44
Titan Machinery	TITN	$0.23	$0.36	11.8%	12/15/2008	AMC	$13.90
Aar Corp	AIR	$0.51	$0.42	2.3%	12/16/2008	AMC	$14.95
Adobe Systems	ADBE	$0.51	$0.40	5.0%	12/16/2008	AMC	$22.19
Appld Signal	APSG	$0.19	$0.19	0.0%	12/16/2008	N/A	$16.19
Best Buy	BBY	$0.27	$0.53	(15.8%)	12/16/2008	BTO	$24.10
Factset Resh	FDS	$0.64	$0.58	6.3%	12/16/2008	BTO	$36.62
Goldman Sachs	GS	($3.37)	$7.01	(4.2%)	12/16/2008	BTO	$69.71
Hovnanian Entrp	HOV	($1.63)	($7.42)	18.0%	12/16/2008	AMC	$2.24
Rentech Inc	RTK	($0.05)	($0.23)	(25.0%)	12/16/2008	N/A	$0.59
Verifone Hldgs	PAY	$0.21	$0.22	(6.7%)	12/16/2008	AMC	$3.59
Apogee Entrprs	APOG	$0.42	$0.42	4.9%	12/17/2008	AMC	$8.21
Commercial Metl	CMC	$0.36	$0.54	(42.9%)	12/17/2008	BTO	$11.77
Conagra Foods	CAG	$0.38	$0.53	12.5%	12/17/2008	BTO	$14.25
Genl Mills	GIS	$1.23	$1.18	10.3%	12/17/2008	BTO	$60.50
Herman Miller	MLHR	$0.60	$0.72	9.1%	12/17/2008	AMC	$13.37
Joy Global Inc	JOYG	$1.08	$0.80	(2.3%)	12/17/2008	BTO	$22.01
Lindsay Corp	LNN	$0.47	$0.36	28.6%	12/17/2008	BTO	$40.68
Mds Inc	MDZ	$0.10	$0.09	(25.0%)	12/17/2008	BTO	$6.58
Nike Inc-B	NKE	$0.77	$0.71	10.8%	12/17/2008	AMC	$48.73
Nordson Corp	NDSN	$0.84	$0.87	(5.1%)	12/17/2008	AMC	$29.35
Paychex Inc	PAYX	$0.40	$0.40	0.0%	12/17/2008	AMC	$25.60
3Com Corp	COMS	$0.07	$0.02	50.0%	12/18/2008	AMC	$2.08
Accenture Ltd	ACN	$0.69	$0.60	0.0%	12/18/2008	AMC	$27.56
Actuant Corp	ATU	$0.44	$0.52	0.0%	12/18/2008	BTO	$15.38
Darden Restrnt	DRI	$0.31	$0.42	0.0%	12/18/2008	AMC	$20.01
Discover Fin Sv	DFS	$0.15	$0.40	5.7%	12/18/2008	BTO	$9.11
Electroglas Inc	EGLS	$0.00	($0.13)	(433.3%)	12/18/2008	N/A	$0.16
Fedex Corp	FDX	$1.58	$1.54	5.1%	12/18/2008	BTO	$58.61
Lennar Corp -A	LEN	($1.33)	($0.42)	(5.7%)	12/18/2008	BTO	$8.98
Marcus Corp	MCS	$0.10	$0.10	(10.6%)	12/18/2008	BTO	$12.54
Oracle Corp	ORCL	$0.33	$0.30	11.5%	12/18/2008	AMC	$16.46
Palm Inc	PALM	($0.36)	($0.02)	13.6%	12/18/2008	AMC	$1.78
Pier 1 Imports	PIR	($0.28)	($0.11)	(41.7%)	12/18/2008	BTO	$0.45
Progress Softwa	PRGS	$0.09	$0.54	(3.3%)	12/18/2008	BTO	$19.15
Quiksilver Inc	ZQK	$0.25	$0.51	4.8%	12/18/2008	AMC	$1.28
Research In Mot	RIMM	$0.80	$0.65	(1.2%)	12/18/2008	AMC	$37.46
Rite Aid Corp	RAD	($0.16)	($0.12)	(92.9%)	12/18/2008	BTO	$0.47
Scholastic Corp	SCHL	$2.14	$1.93	(18.0%)	12/18/2008	BTO	$16.50
Smart Modular	SMOD	($0.01)	$0.18	(25.0%)	12/18/2008	AMC	$0.82
Winnebago	WGO	($0.21)	$0.34	(115.4%)	12/18/2008	BTO	$4.98
Worthington Ind	WOR	$0.35	$0.21	62.07%	12/18/2008	BTO	$12.86
CarMax	KMX	$0.03	$0.14	(45.5%)	12/19/2008	BTO	$8.59
Cintas Corp	CTAS	$0.55	$0.53	(1.9%)	12/19/2008	BTO	$24.02
Jabil Circuit	JBL	$0.27	$0.35	16.0%	12/19/2008	BTO	$6.22

BMO = Before The Market Open, AMC = After Market Close

¹Some of the companies listed in the earnings calendar may not be in the Zacks Rank universe.

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"LEN" Free Stock Analysis: Buy? Sell? Hold?
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