Every week, I take a look at a few companies that topped 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.
We can start with CNInsure (Nasdaq: CISG ) . The seller of property, casualty, and life insurance in China came through with a second-quarter profit of $0.37 a share, well ahead of the $0.27 a share that was expected.
It was generally a good week for Chinese stocks that trade on stateside exchanges, as advertising giant Focus Media (Nasdaq: FMCN ) , solar energy player Trina Solar (NYSE: TSL ) , and wireless content provider KongZhong (Nasdaq: KONG ) all landed ahead of the pros' estimates.
Electronic scoreboard maker Daktronics (Nasdaq: DAKT ) also knows how to score. Its quarterly profit doubled to $0.06 a share, surprising analysts, who were braced for a small deficit. Demand for gargantuan electronic displays isn't necessarily climbing and Daktronics' revenue actually clocked in 12% below where it was a year ago. However, any scoreboard will tell you that a win on the bottom line is still a win.
Finally, we have OmniVision Technologies (Nasdaq: OVTI ) looking good. The maker of image sensor devices is finding brisk demand for its wares, particularly in the mobile phone market, where wireless handset makers continue to improve the quality of the video and snapshots capabilities in their devices. Even the cheapest netbooks come with built-in webcams these days.
Revenue soared 83%, even though Wall Street had expected even more growth on the top line. Things get better as we work our way down the income statement. OmniVision earned $0.39 a share in its latest quarter after adjusting for extraordinary items, ahead of both the $0.35 a share that was projected and last year's small loss.
Keep watching the companies that top 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 Motley Fool Rule Breakers newsletter service. Want in? Check out a free 30-day trial subscription.
Either way, come back next Monday to learn about more stocks that blew the market away.
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