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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 TIBCO Softare (UNKNOWN: TIBX.DL ) .
The enterprise software provider disappointed investors earlier this month when it pre-announced fiscal-fourth-quarter results of no more than $0.38 a share in earnings on $292 million to $295 million in revenue.
Well, reality was a bit kinder. TIBCO cranked out net income of $0.42 a share on $296.5 million in revenue. Analysts were seemingly optimistic to be holding out for a profit of $0.39 a share. TIBCO pedaled past them.
Jabil Circuit (NYSE: JBL ) also beat the pros.
The contract manufacturer for electronics got back on track after missing on the bottom line in its previous quarter. Jabil's profit of $0.61 a share bested the $0.56 a share that analysts were targeting. It's a welcome sight. The tech bellwether hadn't beaten Wall Street income estimates in more than a year before last week's report.
Finally, we have Carnival (NYSE: CCL ) cruising past Wall Street's port.
The world's largest cruise ship operator served up net income of $0.13 a share. Analysts were only holding out for $0.11 a share.
Carnival still hit some rough seas after its report. The cruise giant's guidance was uninspiring, and that sent ripples through the industry. Shares of rival Royal Caribbean (NYSE: RCL ) also fell after Carnival's report, and it comes at a bad time since it's trying to line up a loan to finance its third Oasis megaship. If sentiment remains weak, the chances of NCL finally coming through with its IPO next year will remain slim.
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, check out our brand-new free special report: "The Motley Fool's Top Stock for 2013." The Fool's chief investment officer has selected his No. 1 stock for the next year. Just click here to access the report and find out the name of this under-the-radar company.
Either way, come back next week to learn about more stocks that blew the market away in the coming days.