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Industrial & Environmental Services Stocks Q4 In Review: Cintas (NASDAQ:CTAS) Vs Peers

CTAS Cover Image

As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the industrial & environmental services industry, including Cintas (NASDAQ: CTAS) and its peers.

Growing regulatory pressure on environmental compliance and increasing corporate ESG commitments should buoy the sector for years to come. On the other hand, environmental regulations continue to evolve, and this may require costly upgrades, volatility in commodity waste and recycling markets, and labor shortages in industrial services. As for digitization, a theme that is impacting nearly every industry, the increasing use of data, analytics, and automation will give rise to improved efficiency of operations. Conversely, though, the benefits of digitization also come with challenges of integrating new technologies into legacy systems.

The 6 industrial & environmental services stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 1.3% on average since the latest earnings results.

Cintas (NASDAQ: CTAS)

Starting as a family business collecting and cleaning shop rags in Cincinnati, Cintas (NASDAQ: CTAS) provides corporate identity uniforms, facility services, and safety products to over one million businesses across North America.

Cintas reported revenues of $2.8 billion, up 9.3% year on year. This print exceeded analysts’ expectations by 1.4%. Overall, it was a satisfactory quarter for the company with a narrow beat of analysts’ revenue estimates.

Cintas Total Revenue

Interestingly, the stock is up 3.7% since reporting and currently trades at $194.32.

Is now the time to buy Cintas? Access our full analysis of the earnings results here, it’s free.

Best Q4: Tetra Tech (NASDAQ: TTEK)

With a 50-year legacy of "Leading with Science" and operations on all seven continents, Tetra Tech (NASDAQ: TTEK) provides high-end consulting and engineering services focused on water management, environmental solutions, and sustainable infrastructure for government and commercial clients worldwide.

Tetra Tech reported revenues of $1.04 billion, down 13.4% year on year, outperforming analysts’ expectations by 6.4%. The business had a strong quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Tetra Tech Total Revenue

Tetra Tech pulled off the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 4.8% since reporting. It currently trades at $35.31.

Is now the time to buy Tetra Tech? Access our full analysis of the earnings results here, it’s free.

Slowest Q4: Vestis (NYSE: VSTS)

Operating a network of more than 350 facilities with 3,300 delivery routes serving customers weekly, Vestis (NYSE: VSTS) provides uniform rentals, workplace supplies, and facility services to over 300,000 business locations across the United States and Canada.

Vestis reported revenues of $663.4 million, down 3.2% year on year, in line with analysts’ expectations. It was a softer quarter as it posted EPS in line with analysts’ estimates and revenue in line with analysts’ estimates.

Interestingly, the stock is up 7% since the results and currently trades at $7.83.

Read our full analysis of Vestis’s results here.

UniFirst (NYSE: UNF)

With a fleet of trucks making weekly deliveries to over 300,000 customer locations, UniFirst (NYSE: UNF) provides, rents, cleans, and maintains workplace uniforms and protective clothing for businesses across various industries.

UniFirst reported revenues of $621.3 million, up 2.7% year on year. This print beat analysts’ expectations by 1%. Taking a step back, it was a slower quarter as it produced a significant miss of analysts’ EPS estimates and full-year revenue guidance meeting analysts’ expectations.

The stock is up 14.4% since reporting and currently trades at $232.45.

Read our full, actionable report on UniFirst here, it’s free.

CECO Environmental (NASDAQ: CECO)

With roots dating back to 1869 and a focus on creating cleaner industrial operations, CECO Environmental (NASDAQ: CECO) provides technology and expertise that helps industrial companies reduce emissions, treat water, and improve energy efficiency across various sectors.

CECO Environmental reported revenues of $214.7 million, up 35.4% year on year. This number topped analysts’ expectations by 3.1%. Taking a step back, it was a satisfactory quarter as it also logged full-year revenue guidance exceeding analysts’ expectations but a significant miss of analysts’ EPS estimates.

CECO Environmental pulled off the fastest revenue growth and highest full-year guidance raise among its peers. The stock is down 18.5% since reporting and currently trades at $63.32.

Read our full, actionable report on CECO Environmental here, it’s free.


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