The end of the Q1 2025 earnings season is approaching.
Tonight is the last big report. Lululemon $LULU is scheduled to report earnings after the close today, and we're expecting fireworks. Its Q4 2024 earnings reactions (~+16%) was one of the best ever.
The market is expecting the company to report revenues of $3.58B and earnings per share of $5.85.
As we're writing this, the stock is trading at its high of the day (~+3%).
Stay tuned...
For now, let's talk about the earnings reactions from Wednesday.
Here are the latest earnings stats from the S&P 500 👇
*Click the image to enlarge it
Cintas $CTAS had the best earnings reaction. They reported revenues of $2.61B versus the $2.60 estimate and earnings per share of $1.13 versus the $1.06 estimate.
Paychex $PAYX had the 2nd-best earnings reaction. They reported in-line revenues and earnings per share of $1.49 versus the $1.48 estimate.
Finally, Dollar Tree $DLTR also had a positive earnings reaction. They reported revenues of $5B versus the $8.24 estimate and earnings per share of $2.29 versus the $2.20 estimate.
McCormick & Company $MKC reported earnings on Tuesday.
This is the company that has grown into the leader in all things related to flavor. Their products include Frank's RedHot, Cholula, and much more.
It's basically impossible to have a kitchen without a McCormick label.
The stock has been a leader in the Consumer Staples sector and has rallied after its last 5 earnings reports. This is one of the longest beat streaks in the S&P 500.
Following the release of its report, the stock opened 5% lower but rallied throughout the day to close nearly flat for the session. It was an epic comeback for the bulls!
What initially spooked the market?
It was all about the guidance.
The market was expecting the company to announce an upward revision of its forward guidance. Instead, they maintained the current guidance.
Let's talk about what else happened.
Here are the earnings stats from MKC 👇
*Click the image to enlarge it
As you can see, McCormick reported a double miss. Their revenue was in line, but the EPS number came in 4 cents below the estimate.
