Cintas Corporation (PPAI 303547, D12) reports strong revenue growth in its financial report on the Cincinnati-based company’s fiscal 2022 third quarter, which ended February 28. The distributor reports revenue for the quarter of $1.96 billion, up 10.3% compared to fiscal 2021’s fiscal third quarter.

Operating income for the third quarter of fiscal 2022 was $407.6 million compared to $326.5 million in last year's third quarter. Fiscal 2022 third quarter operating income also included a $30.2 million gain on an equity method investment transaction.

"We are pleased with our third quarter financial results, led by a revenue increase of 10.3%,” says Todd M. Schneider, Cintas' president and CEO. “Excluding the gain previously mentioned, operating income and diluted EPS increased significantly despite inflation. Our financial results are indicative of our strong value proposition. Businesses prioritize image, cleanliness, safety and compliance and challenged with labor scarcity and rising costs, increasingly count on Cintas to help get them ‘Ready for the Workday.’”

Schneider says, "We are increasing our financial guidance. We expect our fiscal 2022 fourth quarter revenue to be in the range of $1.96 billion to $2.02 billion and diluted EPS to be in the range of $2.54 to $2.74. Our fourth quarter fiscal 2022 effective tax rate is expected to be approximately 23.2% compared to a rate of 19.4% for last year's fourth quarter. The expected higher effective tax rate is anticipated to negatively impact fiscal 2022 fourth quarter diluted EPS guidance by approximately $0.14 and diluted EPS growth by approximately 560 basis points. Our financial guidance includes share buybacks through March 22, 2022, but does not include the impact of any future share buybacks."