Every week, I take a look at a few companies that topped their profit targets. Leaving Wall Street's pros with quizzical looks on their faces can be a good thing. It usually means that the companies have more in the tank than analysts figured, and capital appreciation often follows.
Let's take a look at a few companies that humbled the prognosticators over the past few trading days.
We can start with Netflix (Nasdaq: NFLX ) . The pioneer in mail-order DVD rentals saw earnings climb to $0.42 a share, 14% higher than last year's showing on a per-share basis and comfortably ahead of the $0.40 a share that analysts were looking for.
Netflix has now topped Wall Street's projections in 14 of the past 16 quarters, an amazing record when you consider that Netflix has had to battle stubborn companies like Blockbuster (NYSE: BBI ) and Wal-Mart (NYSE: WMT ) that don't typically go down quietly in its niche.
XM Satellite Radio (Nasdaq: XMSR ) is another topper. The leading satellite radio provider posted a narrower deficit of $0.38 a share. A loss isn't a trait you typically see in market beaters, but jaded investing professionals were braced for a $0.41-a-share loss out of the company.
Finally, we have Janus Capital Group (NYSE: JNS ) showing us its better half. The mutual fund specialist earned $0.34 a share from continuing operations in its latest quarter before a one-time tax benefit, blowing past guesstimates of $0.30 a share. The report became even more noteworthy when fellow fund heavies T. Rowe Price (Nasdaq: TROW ) and Legg Mason (NYSE: LM ) failed to beat out Mr. Market.
So, keep watching the companies that top expectations. Over time, it will be a rewarding experience for investors as the market rewards the overachievers. That's the kind of surprise we look for in the Rule Breakers newsletter service. Want in? Check out a 30-day free trial subscription.
Either way, come back next Monday to learn about more stocks that blew the market away.