With so many companies reporting earnings in such a short time period, it can be tough to keep tabs on who rocked the second quarter and who could use a do-over. That's why I asked three of our Foolish analysts to name one company that crushed its quarterly earnings and is still attractively priced today.
Jeff Fischer, advisor, Motley Fool Pro and Motley Fool Options
Intel
Looking ahead, grab the salsa, because Intel's chip party continues. The company expects third-quarter revenue of $11.6 billion, plus or minus $400 million (what's $400 million between friends?). The $20 stock trades at less than 10 times the new 2010 average earnings estimate of $2.04 per share, while the S&P 500 is closer to 13 times forward estimates.
The main risk Intel investors face is the possibility for a sharp slowdown in earnings in 2011, even though management believes growth will continue on the heels of emerging market demand. The average analyst only expects 3% earnings growth from Intel in 2011, but if the company proves them wrong, there's upside in the stock. Management says technology is so integral to life now that economic cycles affect it less than before. Plus, the U.S. is in the midst of a corporate upgrade, and emerging market demand should grow for years.
Jim Gillies, advisor, Motley Fool Options, and analyst, Motley Fool Hidden Gems
If you want consistency, how about a debt collector that delivered record cash collections (its metric of most interest) for the sixth consecutive quarter? Portfolio Recovery Associates
Net result, a well-run core business, with a growing annuity-like cash flow stream from the bankruptcy portfolios, all served to deliver record earnings for the second quarter, beating analysts' expectations by a whopping 23%. And because the debts that Portfolio buys are seeing repayments over a period of years, I expect continued awesomeness in the coming quarters. At around $67, the stock looks reasonably priced to me.
Matt Argersinger, analyst, Motley Fool Stock Advisor
Of the dozens of companies on my radar this earnings season, no single company's results impressed me more than Ford's
Ford's second-quarter revenue rose $8.3 billion from last year to $35.1 billion, while its pre-tax operating income increased from a $600 million loss last year to a $2.85 billion profit. In every geographic region, Ford was profitable, even in economically challenged Europe. Thanks mostly to this strong performance, Ford has been able to pay down an incredible $7 billion in debt since the end of the first quarter.
Just check out Ford's performance in the first half of 2010, compared with other top automakers:
Company |
% Change in YTD Sales |
2010 YTD Market Share |
2009 YTD Market Share |
---|---|---|---|
Ford |
24.1% |
16.8% |
15.5% |
Chrysler |
10.8% |
9.3% |
9.6% |
GM |
13% |
19.2% |
19.5% |
Honda Motor |
9.4% |
10.6% |
11.1% |
Toyota |
7.5% |
15.2% |
16.3% |
Ford's 2010 sales growth leads the pack by a wide margin. More importantly, Ford is the only automaker to gain market share over the past year. Ford's business is no longer in turnaround mode -- it's shifting into overdrive.
The Foolish conclusion
You've heard what our Foolish analysts have to say -- now we want to know what you think! Are you planning on purchasing any of these earnings season champs? Or do you have another stock to suggest? Let us know in the comments box below!