We're neck-deep in earnings season, and that's a great time to check out companies that trounce the market's bottom-line expectations. Why? Because you have plenty of victors to choose from, and you also have so many possibilities that some may never get a chance to register on the market's applause meter.
That said, let's take a closer look at a few of the companies that humbled the prognosticators this past week.
We'll start with Marvel Entertainment (NYSE:MVL). The media company rich in comic-book characters earned $0.19 a share in its latest quarter, well above the $0.12-per-share Wall Street target. The Motley Fool Stock Advisor pick has bounced back in recent years as its inked creations, including Spider-Man and X-Men, have become valuable licensing and celluloid commodities.
Warner Music Group (NYSE:WMG) was another topper. The major record label behind artists such as Madonna, Green Day, and Depeche Mode came through with a narrower March deficit than analysts were expecting. The company lost $0.05 a share when Wall Street was braced for a $0.16 shortcoming. A boom in digital downloads, a segment that has grown to account for 11% of all of Warner's revenue, helped improve margins.
Then we have Whole Foods Market (NASDAQ:WFMI). Another winning Motley Fool Stock Advisor recommendation, the organic grocer earned $0.37 a share in its fiscal second quarter. Analysts were expecting Whole Foods to produce a harvest of just $0.35 per share in homegrown profits.
Unlike the rocky ways exhibited by rival Wild Oats (NASDAQ:OATS), Whole Foods has been a pretty consistent grower. When it stumbles, it bounces back quickly, and that's just what happened last week. The upscale supermarket chain hit back with a vengeance after coming up short in two earlier quarters.
So keep watching the companies that lap expectations. Over time, it will be a rewarding experience for investors, and it's the kind of surprise that market watchers relish in the Rule Breakers newsletter service. The strategy has paid off -- the average Rule Breakers selection has trounced the S&P 500's market return. 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.
Longtime Fool contributor Rick Munarriz is a fan of toppers. He does not own shares in any of the companies in this story. The Foo l has a disclosure policy. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early





