Every week, I take a look at a few companies that lapped their profit targets. Leaving Wall Street's pros with quizzical looks on their faces can be a good thing. It usually means that the companies have more in the tank than analysts figured, and capital appreciation often follows.
Let's take a look at a few companies that humbled the prognosticators over the past few trading days.
We can start with Netflix (Nasdaq: NFLX ) . The DVD-rental specialist knows how to deliver flicks to its 7.5 million subscribers. It also knows how to deliver better-than-expected results. The company earned $0.24 a share in its latest quarter, well ahead of the mere $0.14 a share that analysts had been targeting.
It was a monster quarter for Netflix, eating away at a cash-strapped Blockbuster (NYSE: BBI ) , even as behemoths like Apple (Nasdaq: AAPL ) and Amazon.com (Nasdaq: AMZN ) are looking to turn up the stakes in digitally delivered rentals.
Microsoft (Nasdaq: MSFT ) is another topper. The world's leading software maker earned $0.50 a share in its fiscal second quarter. Wall Street was looking to meet Mr. Softy at the $0.46-a-share mark. Strong software upgrades and a weak dollar combined to prop up results at the Windows watcher.
Finally, we have 1-800-Flowers (Nasdaq: FLWS ) blooming nicely. The floral-arrangements player earned $0.29 a share during its fiscal second quarter, topping forecasts of $0.27 a share for the period. I guess you can say the company rose (get it, rose?) above the predictions.
So, keep watching the companies that lap expectations. Over time, it will be a rewarding experience for investors as the market rewards the overachievers. That's the kind of surprise we look for in the Rule Breakers newsletter service. Want in? Check out a 30-day trial subscription.
Either way, come back next Monday to learn about more stocks that blew the market away.