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Don't settle for ordinary quarterly reports.
I take a look every week at three companies that beat market expectations, 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 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, starting with SodaStream International (Nasdaq: SODA ) .
The Israeli company behind the popular home-based beverage system that turns flat water into carbonated soft drinks popped higher after posting strong quarterly results.
Revenue climbed 50% and strong sales of the company's higher margin carbonator refills and soda flavors helped boost margins. Adjusted earnings climbed 67% to $11.5 million -- or $0.55 a share. Analysts were only expecting $0.45 a share on the bottom line.
SodaStream's stock moved sharply higher on the news, especially since the shares had tumbled a week earlier after Green Mountain Coffee Roasters posted disappointing quarterly financials. The connection between home-brewed Keurig coffee drinks and liters of cold flavored soda was iffy at best, but SodaStream earned the disconnect.
Affymax (Nasdaq: AFFY ) also topped Wall Street. The upstart biotech came through with a rare profitable quarter, earning $0.87 a share on the strength of milestones earned during the period from Affymax's partner on its Omontys Injection compound. The pros were holding out for net income of only $0.49 a share.
Finally we have Jamba (Nasdaq: JMBA ) blending better numbers. The leading smoothie chain posted a loss of $0.03 a share during the seasonally slow first quarter. Analysts figured that Jamba would lose twice as much after posting a deficit of $0.11 a share a year earlier.
Moving in the right direction
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.