Sales and earnings at uniform rental company Cintas Corp. will not be as high as financial analysts expect in the coming year, says the company’s chief executive officer.
At issue are differences of opinion on the impact of the U.S. jobs recovery and holiday business, according to CEO Scott Farmer
“We anticipate that when job recovery does occur, it will be a slow and lengthy process,” Farmer said in a statement release along with the company's quarterly earnings report. “This year, we anticipate customer holiday closures will be longer and more widesparead than they have been in better economic climates.”
“For these reasons, we believe that current analyst expectations for Cintas revenue and earnings are too optimistic,” he said.
The Cincinnati-based firm’s largest business is uniform rentals. It also earns income in other areas such as uniform sales, first aid and fire protection services, and document management.
The company on Thursday reported that second fiscal quarter net income was $57.2 million, or 37 cents per share, on sales of $884.5 million.
On Friday, shares of Cintas fell more than 11 percent to close at $3.33 per share.