Wednesday continued the bull market run that the stock market has seen over the past two weeks, with the Dow Jones Industrials once again setting another all-time record high and the S&P 500 also following suit. Gains that came in roughly between 0.25% and 0.5% for the major market averages stemmed largely from positive news on the earnings front, which featured strong results from the technology and financial industries. Many stocks contributed to the market's overall gains, but some of the biggest contributors included Marvell Technology (NASDAQ:MRVL), Polaris Industries (NYSE:PII), and Cintas (NASDAQ:CTAS).
Marvell delivers marvelous quarterly results
Marvell Technology rose 14% despite posting what many considered to be mixed results in its fiscal fourth-quarter financial report on Tuesday night. The tech company dealt with substantial contractions in sales and adjusted earnings, which fell by 28% and 56%, respectively, but the bottom-line figures of $0.11 per share were better than most investors had expected. The more important factor in Marvell's upward move was that the company has put processes in place to try to bring a federal probe into its accounting practices to an end, and the idea that the company is successfully moving toward higher-potential areas like data centers and cloud computing are driving enthusiasm about the stock. Marvell still has a long way to go, but the rebound thus far reflects the restructuring efforts that have gone well for the company.
Polaris zooms ahead
Polaris Industries gained 9% after reporting its second-quarter results. The maker of snowmobiles, motorcycles, and off-road vehicles didn't seem to have a stellar quarter, with sales climbing just half a percent and earnings falling by more than a quarter to $71.2 million, or $1.09 per share. Yet those results were still better than those following the stock had anticipated, and Polaris argued that the quarter was a success given product recall, a weaker environment for retail sales generally, and tough comparisons against an extremely strong quarter during the year-ago period. Shareholders also celebrated the coming introduction of 2017 model year products, and strength in the motorcycle segment managed to overcome weaker results in the snowmobile and off-road vehicle division to produce overall top-line gains. Looking forward, Polaris hopes to reestablish its strong reputation, and despite a downgrade in earnings guidance, shareholders are willing to put the past behind the company and look toward better times down the road.
Cintas gets back to work
Finally, Cintas climbed 10%. The company's second-quarter earnings report featured double-digit percentage sales growth and a 17% rise in net income, and earnings of $1.08 per share beat the consensus forecast by $0.08. Extremely strong growth in the first aid, safety, fire protection, and direct sales unit outpaced Cintas' core uniform rental business, but the company did a good job of growing both by developing its internal businesses and by making smart strategic acquisitions. Cintas expects further growth in the coming fiscal year, and investors are confident that as long as the job market stays healthy, Cintas shares can remain a good investment.