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 this past week.
Let's start with Cintas (Nasdaq: CTAS ) . The corporate uniform giant dressed up its bottom line with a profit of $0.58 a share in its latest quarter. The company's performance was ahead of both the $0.56 a share that analysts were looking for and the $0.57 a share it earned a year earlier.
Cintas is a consistent producer, with 39 consecutive years of growing revenue and earnings, but don't dismiss the importance of the company's win. Renting out uniforms to companies is a great gauge of the economy. Recent weakness at Office Depot (NYSE: ODP ) may be a negative omen for startups and sole proprietorships, but Cintas' growth is an indicator for larger companies.
Intel (Nasdaq: INTC ) is another topper. The microprocessor bellwether earned $0.28 a share, smoking past the pros perched at the $0.25 a share mark. Health in notebook chips and an aggressive share buyback helped propel profits per share higher. The report provided more stability than the upheaval at AMD (NYSE: AMD ) later in the week.
Finally, we have eBay (Nasdaq: EBAY ) bidding for attention. The online marketplace scored a profit of $0.43 a share during its second quarter, better than the $0.41 a share market guesstimate. Unfortunately, the report also found the auctioneer holding firm to its guidance for the balance of the year. Beating the street can only take you so far. You also have to appear as if the good times will continue.
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.