Can Financial Federal (NYSE:FIF) continue reporting solid results? The company has a niche, in that it focuses on small to mid-sized businesses with annual revenues below $25 million and primarily finances industrial commercial equipment. These companies -- because of their size and cyclical nature -- are usually the most vulnerable in down times. But even within our current uncertain market, Financial Federal has not increased its provision for loan losses, which is saying a lot.

For the quarter, net income rose 11%, to $12.7 million, but thanks to share buybacks, diluted earnings per share increased an even better 16%, to $0.50. On the flip side, finance receivables fell more than 9%, to $297 million, and net charge-offs for the quarter inched up 0.02%.

Financial Federal is child's play next to huge rivals such as General Electric (NYSE:GE) and Wells Fargo (NYSE:WFC). Despite such staunch competition, though, the company has been able to survive by focusing on smaller companies and emphasizing customer service and financial expertise -- a staple of smaller companies trying to compete with the big boys. Although the economic environment is uncertain, construction projects have remained strong so far. I look for the company's performance to follow suit.

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