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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 Brocade (Nasdaq: BRCD ) .
Brocade continues to make major strides in the networked storage market. Its CEO may be stepping down, but it's not as if the company's following suit. Brocade's adjusted quarterly profit of $0.14 a share landed comfortably ahead of the $0.12 a share that the market was expecting.
Investors shouldn't be surprised since Brocade has beaten market estimates by 25% or more in each of the three prior periods.
JDS Uniphase (Nasdaq: JDSU ) was another bottom-line beater in tech. The optical networking bellwether could've put out more encouraging guidance, but there was no denying that $0.15 a share in net income for its most recent quarter was well ahead of the $0.12 a share that the pros were targeting.
Finally, we have SINA (Nasdaq: SINA ) going back in black. Wall Street figured that the Chinese online juggernaut would post a small deficit as the challenges of monetizing its popular SINA Weibo take its toll. However, SINA broke through with a surprising quarterly profit of $0.05 a share.
SINA's strong showing sticks out in a week that was actually pretty bad for many of its dot-com peers. China's Phoenix New Media (NYSE: FENG ) and online gaming pioneer NetEase.com (Nasdaq: NTES ) stumbled after posting disappointing quarterly results.
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.