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 ExxonMobil (NYSE: XOM). The world's largest company pumped out another record quarter, earning $2.13 a share in the fourth quarter. Analysts were settling for a $1.95-a-share showing. Few companies can even aspire to earn $11.7 billion in a year, much less in a single quarter.
Companies like ExxonMobil and Chevron (NYSE: CVX) are rattling off record results, fueled by higher crude oil prices and the corresponding increase in drivers' pain at the pump.
The home of the Whopper was also a topper. Burger King (NYSE: BKC) saw its fourth-quarter profits climb 29% to $0.36 a share. Wall Street had ordered net income to come in at just $0.32 a share. However, healthy global comps and strong expansion overseas helped the King checkmate the analysts.
Finally, Monster Worldwide (Nasdaq: MNST) scared the pros -- in a good way. The employment listings specialist earned $0.41 a share from continuing operations in its latest quarter, comfortably ahead of the $0.38 a share analysts had expected.
Monster is sitting pretty in an otherwise lackluster sector. HotJobs parent Yahoo! (Nasdaq: YHOO) saw its stock dip into the teens before Mr. Softy offered an exit strategy on Friday. Dice.com parent Dice Holdings (NYSE: DHX) is trading for less than last year's IPO price. Bucking the trend will definitely look good on Monster's resume.
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.
