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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 JDS Uniphase (NASDAQ: VIAV ) . The maker of telecommunications equipment posted an adjusted quarterly profit of $0.18 a share for its latest quarter, well ahead of the $0.14 a share that the market was forecasting. This may be a competitive market, but JDS Uniphase has seen its operating margins expand over the past year.
Ford (NYSE: F ) also drove past the prognosticators. The automaker cranked out quarterly net income of $0.31 a share, leaving Wall Street's $0.25-a-share target in the dust.
Ford wound up beating analyst bottom-line estimates every single quarter in 2012. The auto giant has been able to overcome weakness in Europe to get here. It will be interesting to see what Ford can do when it's running on all cylinders.
Finally, we have Facebook (NASDAQ: FB ) stepping up with its quarterly friend request. The world's largest social networking website engages more than a billion active users every month, and it's paying off. Facebook's quarterly earnings of $0.17 a share landed just past Wall Street's call for net income of $0.15 a share.
Facebook shares did slip on the news. Investors were concerned with the dot-com speedster's operating margins and the lack of growth outside of its core ad revenue. It also doesn't help that Facebook's stock had rallied ahead of the report. However, at the end of the day, Facebook did beat the market.
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.
Want to learn more about Ford? One of our top equity analysts has compiled a premium research report with in-depth analysis on whether Ford is a buy right now, and why. Simply click here to get instant access to this premium report.