Major earnings announcements of last week as well as world events influenced market mood of this week. Costco witnessed significant e-commerce growth, Micron indicated toward earnings improvement, and Cintas maintained its remarkable dividend run. China’s economic stimulus and Meta’s “iPhone moment” made news simultaneously.
Before we dive in, we have a special offer! For a limited time, you can get 70% off Stock Target Advisor’s premium features. Claim your discount here!
Major Earnings Reports of Last Week:
Below are the major earnings reports of last week.
Cintas Corporation (CTAS):
Cintas reported revenue of $2.5 billion, a 7% YoY increase, with profits rising 17% to $452 million. The company achieved its 41st consecutive annual dividend increases and raised forward guidance by 8%. Despite Wall Street’s caution due to its current valuation, Cintas’ consistent growth and potential for cross-selling across various sectors keep it on investors’ watchlists.
Learn More: Cintas Q1 2025 Performance
Micron Technologies (MU)
Revenue soared 93% YoY to $7.8 billion, with profits of $887 million compared to a loss last year. Strong AI demand boosted data center DRAM sales. Micron guided for continued growth, with consumer market normalization expected by May 2025. The stock jumped 14% post-earnings, defying expectations of a slowdown. Wall Street maintains a $135 price target, though concerns over volatility keep some investors wary.
Costco (COST):
Costco’s revenue reached $79.7 billion (+1% YoY) with profits rising 9% to $2.3 billion. E-commerce sales grew by 20%. Membership renewal rates remained high, supporting the company’s steady growth. Costco continues to be seen as a defensive investment. Investors are optimistic about its expansion and international growth prospects.
Notable News and Events:
Below are the major news events that happened last week.
China’s Stimulus:
China introduced a comprehensive stimulus package to support economic growth, including interest rate cuts and support for the real estate sector.
The extensive measures signal Beijing’s commitment to its 5% growth target. However, skepticism persists regarding its long-term effectiveness, given consumer confidence remains low.
Conclusion:
Earnings reports indicate resilience in key sectors, while global events like China’s stimulus injection and Meta’s innovations set the stage for future market shifts. The week’s data suggest cautious optimism amid ongoing economic challenges.
