Q1 Earnings Scorecard and Analyst Reports for Costco, American Express & Goldman Sachs

Thursday, April 24, 2025
Today's Research Daily features new research reports on Costco (COST), American Express (AXP), Goldman Sachs (GS) and others, including two micro-cap stocks Willis Lease Finance Corporation (WLFC) and CPS Technologies Corporation (CPSH).  The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.

These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Q1 Earnings Season Scorecard 

Including all of this morning's results, we now have Q1 results from 157 S&P 500 members. Total earnings for these companies are up +13.3% from the same period last year on +4.1% higher revenues, with 72% beating EPS estimates and 63.1% beating revenue estimates.

For more details about the Q1 earnings season and evolving expectations for the coming periods, please check out our weekly Earnings Trends report here >>>Tech Estimates Come Under Pressure: What to Expect?

Ahead of Wall Street

The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market's open and attempts to make sense of that morning's economic releases and how they will affect that day's market action.

You can read today's AWS here >>> A Busy Morning: Jobless Claims, Durable Goods & Q1 Earnings

Today's Featured Research Reports

Costco shares have outperformed the Zacks Retail - Discount Stores industry over the past year (+36.1% vs. +17.5%). The company being a consumer defensive stock, Costco has been surviving the market turmoil pretty well. The discount retailer’s key strengths are strategic investments, a customer-centric approach, merchandise initiatives, and an emphasis on membership growth.

These factors have been helping it register decent sales and earnings numbers. The Zacks analyst expect Costco to register an 11.3% adjusted earnings per share improvement in fiscal 2025 on 7.2% revenue growth. This outlook reflects Costco’s ability to navigate the challenging operating environment, generate solid sales, and register high membership renewal rates.

A favorable product mix, steady store traffic, pricing power, and strong liquidity position should help Costco keep outperforming. While trading at a premium to its peers, its long-term growth prospects should help the stock see a solid upside.

(You can read the full research report on Costco here >>>)

Shares of American Express have outperformed the Zacks Financial - Miscellaneous Services industry over the past year (+11.1% vs. -0.3%). The company beats first quarter earnings estimates. It’s growth initiatives, like launching new products, reaching new agreements and forging alliances are aiding its card member spending and revenues.

Consumer spending on travel and entertainment, which carries higher margins, is still resilient. Its focus on Millennials and Gen-Z consumers, who exhibit strong dining preferences, will position the company for long-term growth. Its solid cash-generation abilities enable the pursuit of business investments.

However, with higher utilization of its cards, costs in the form of card member services and card member rewards are likely to go up. In 1Q25, total expenses rose 10% YoY.Its current debt level induces an increase in interest expenses. As such, the stock warrants a cautious stance.

(You can read the full research report on American Express here >>>)

Goldman Sachs shares have outperformed the Zacks Financial - Investment Bank industry over the past year (+29.5% vs. +19.2%). The company’s first-quarter 2025 results benefited from solid growth in the Global Banking & Markets division. Goldman Sachs’ refocus on the core strengths of investment banking (IB) and trading businesses through restructuring initiatives will boost its presence in the overseas markets.

The company's decent cash levels and solid credit profile will support capital distribution moves. Moreover, its strategic acquisitions and expansion in the private equity credit line will help diversify the fee-revenue base and offer top-line stability for the company. Its earnings beat estimates in the trailing four quarters.

However, given the current geopolitical concerns, the company’s high dependence on overseas revenues is worrisome. Also, rising expenses may limit its bottom-line growth.

(You can read the full research report on Goldman Sachs here >>>)

Shares of Willis Lease Finance have outperformed the Zacks Transportation - Equipment and Leasing industry over the past year (+187.9% vs. -35%). This microcap company with market capitalization of $888.13 million is well-positioned in the expanding global aircraft leasing market, benefiting from strong air travel demand and a $3 billion portfolio with 81% narrowbody engines.

Record 2024 results underscore robust leasing performance. Its vertically integrated model, including in-house MROs and parts sales, enhances asset lifecycle value and margin efficiency. Strategic investments in SAF production and aftermarket services add future growth drivers. A new dividend policy signals balance sheet strength and confidence in cash flows.

However, WLFC faces elevated debt and rising finance costs. Persistent OEM delays and MRO bottlenecks constrain asset deployment. Heavy reliance on narrowbody engines and short-term leases increases cyclicality and concentration risks. Escalating maintenance costs and growing competition, alongside tightening regulations, further challenge long-term margins and strategic agility.

(You can read the full research report on Willis Lease Finance here >>>)

CPS Technologies’ shares have outperformed the Zacks Electronics - Miscellaneous Components industry over the past six months (+10.2% vs. -18.4%). This microcap company with market capitalization of $21.64 million offers long-term potential through contract wins, expanding applications in semiconductors, defense and clean energy, and increasing traction from SBIR-funded innovations.

A $13.3-million semiconductor contract and multiple government awards support top-line visibility and validate CPSH’s materials technology. Its third production shift improves capacity and sets the stage for margin recovery. Commercial traction in radiation shielding and fiber-reinforced aluminum highlights successful R&D conversion.

However, risks include high margin sensitivity to volume fluctuations, operational inefficiencies during labor scale-up, inventory risks from the build-to-order model, and limited long-term contract coverage. Without sustained high utilization and stronger contract visibility, profitability may remain volatile despite a growing innovation pipeline.

(You can read the full research report on CPS Technologies here >>>)

Other noteworthy reports we are featuring today include ServiceNow, Inc. (NOW), Amgen Inc. (AMGN) and Amphenol Corporation (APH).

Director of Research

Sheraz Mian

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

Decent Comparable Sales Run to Fuel Costco's (COST) Top Line

Resilient Card Member Spend Aid AmEx (AXP), Expenses High

Business Diversification Aids Goldman (GS) Amid Cost Woes

Featured Reports

Growing Customer Base Drives ServiceNow's (NOW) Prospects
Per the Zacks analyst, ServiceNow benefits from rising adoption of its workflows from companies undergoing digital transformation.

End-Market Strength & Diversification Aids Amphenol (APH)
Per the Zacks analyst, Amphenol benefits from a diversified business model that lowers volatility of individual geographies.

TE Connectivity (TEL) Rides on Strong Industrial Growth
Per the Zacks analyst, TE Connectivity is benefiting from strong growth in the Industrial segment driven by strong order momentum.

Robust Pipeline Activity, Deal Wins Benefit Guidewire (GWRE)
Per the Zacks analyst, twelve deal wins by the Guidewire cloud platform coupled with increasing migration activities and a robust business pipeline is cushioning Guidewire's performance.

HEPACO Buyout Benefits Clean Harbors (CLH), Competition High
Per the Zacks analyst, HEPACO acquisition expanded Clean Harbors' Environmental Services segment's field services business. High competition lowers pricing power and increases operational expenses.

Liberty Energy (LBRT) Benefits from IMG Acquisition
The Zacks analyst believes that Liberty Energy's diversification into power business via IMG acquisition expands its capabilities but execution risk amid market volatility raises concern.

Vazkepa EU Sales Aid Amarin (AMRN) Amid Generic Competition
Per the Zacks analyst, Amarin's sole marketed drug, Vazkepa, is driving the top line in European markets. Rising generic competition in the United States remains a woe.

New Upgrades

Business Restructuring Efforts, Buyouts Aid Barclays (BCS)
Per the Zacks analyst, restructuring efforts to simplify business and boost operating efficiency, Tesco's retail banking operation buyout and solid balance sheet will likely aid Barclays' financials.

Investments, Expanding Customer Base Aid MDU Resources (MDU)
Per the Zacks analyst, MDU Resources' investments will fortify its infrastructure. Strong assets will allow MDU to meet rising demand from its expanding customer base and benefit from same.

Strength in Home & Building Products Unit Aids Griffon (GFF)
Per the Zacks analyst, solid momentum in Griffon's Home and Building Products segment, fueled by strong repair and remodeling activities in the construction market, will lend it momentum.

New Downgrades

Supply Chain Issues & Shortage of Labor to Hit Hexcel (HXL)
Per the Zacks analyst, persistent supply chain constraints may hurt Hexcel. Shortage of skilled labor, also continues to pose a threat for the company's overall growth.

Low Volumes & Elevated Costs to Hurt Timken (TKR)
Per the Zacks analyst, low volume in its segments reflecting weak demand in most end markets as well as higher manufacturing and other costs will weigh on Timken's results.

Cost Inflation Weighs on General Mills' (GIS) Performance
Per the Zacks analyst, General Mills is seeing elevated cost inflation. In the third quarter of fiscal 2025, its adjusted gross margin fell 60 basis points due to higher input costs and other factors.

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This article originally published on Zacks Investment Research (zacks.com).

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