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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 Standard Microsystems (Nasdaq: SMSC ) .
The provider of connectivity solutions for the proliferation of data in PCs, cars, and other consumer devices posted an adjusted profit of $0.53 a share. Analysts were only holding out for a profit of $0.33 a share.
This is the second quarter in a row that Standard Microsystems has blown past the pros. The company surprised investors with a quarterly profit three months ago when the market was braced for a deficit.
Xyratex (Nasdaq: XRTX ) was another winner in a quiet week for earnings news.
Xyratex's adjusted net income of $0.32 a share was more than enough to hurdle past the $0.29 a share that Mr. Market was banking on. The data storage specialist has been consistently landing ahead of Wall Street forecasts over the past year, so another solid beat really isn't a surprise.
Finally, we have International Speedway (Nasdaq: ISCA ) revving up its engines with an adjusted profit of $0.52 a share. Investors were expecting the motorsports promoter behind the Daytona and Talladega speedways to check in with earnings of only $0.40 a share.
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