Don't settle for ordinary quarterly reports.
I take a look at three companies that beat market expectations every week, since I believe that it's the biggest factor in a stock beating the market. Leaving Wall Street's pros with stunned expressions can be a good thing. It usually means that the companies have more in the tank than analysts figured. Capital appreciation typically follows.
Let's take a look at a few companies that humbled the pros over the past few trading days.
We can start with SYNNEX (NYSE: SNX ) .
"SYNNEX investors should be used to landing well ahead of the prognosticators," I wrote the day before the IT supply chain specialist's quarterly report. "The company has beaten analyst profit targets for 16 quarters in a row. Given the trend, it would be a shock if SYNNEX actually only earned $1.14 a share tomorrow."
Indeed. SYNNEX blew that target out of the water, earning $1.37 a share instead.
Schnitzer Steel (Nasdaq: SCHN ) also managed to "steel" the show last week. The recycler of ferrous and nonferrous scrap metal was already rolling before last week's report, fueled by healthy exports to China, South Korea, Turkey, and other steel-hungry nations in faraway places.
How did last week's quarter play out? Well, despite a 20% surge in revenue, squeezed margins saw profitability clock in at $0.25 a share. Schnitzer had earned $0.64 a share a year earlier. However, Wall Street figured that the steel company would earn just $0.22 a share this time.
Finally, we have VOXX (Nasdaq: VOXX ) on the clock. The maker of audio electronics delivered beefy margins and market-thumping bottom-line results of $0.38 a share in its latest report. The pros were banking on a profit of $0.31 a share.
It's important to keep watching the companies that surpass expectations. Over time, it will be a lucrative experience for investors as the market rewards the overachievers. That's the kind of surprise that we look for in the Rule Breakers newsletter service. Want in? Check out a 30-day trial subscription. If that's not up your alley just yet, you can still check out a free special report detailing the next trillion-dollar revolution.
Either way, come back next week to learn about more stocks that blew the market away in the coming days.
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