Don't settle for ordinary quarterly reports.
I take a look at three companies that beat market expectations every week, since I believe that it's the biggest factor in a stock beating the market. Leaving Wall Street's pros with stunned expressions can be a good thing. It usually means that the companies have more in the tank than analysts figured. Capital appreciation typically follows.
Let's take a look at a few companies that humbled the pros over the past few trading days.
We can start with Intuitive Surgical (Nasdaq: ISRG).
The company behind the da Vinci surgical robots that have revolutionized operating tables at a growing number of hospitals for certain procedures earned $3.75 a share in its latest quarter, blowing past the pros who had it pegged at $3.35 a share.
Shares of the medical robotics darling still took a hit after posting blowout numbers, largely the result of projecting 17%-19% in top-line growth for the year ahead. Sure, this is a noticeable deceleration from its headier growth in the past, but Intuitive Surgical also has a way of playing down its prospects. How else do you think it has beaten analyst profit estimates for 11 quarters in a row now?
Freeport-McMoRan (NYSE: FCX) came out a few copper pennies ahead of the prognosticators. The copper and gold miner did see its profitability slide 59% to $0.67 a share, but that was still better than the $0.60 a share that Mr. Market was targeting.
Freeport-McMoRan had a rough 2011. Copper prices tanked and a strike at an Indonesian mine ate into its production. It's off to a better start in 2012.
Finally we have Goldman Sachs (NYSE: GS) with a story similar to Freeport-McMoRan, minus the Indonesian strikes. A 21% slide in trading revenue found net income dipping to $1.84 a share, but that was well ahead of the $1.24 a share the market was bracing itself for.
It's important to keep watching the companies that surpass expectations. Over time, it will be a lucrative experience for investors as the market rewards the overachievers. That's the kind of surprise that we look for in the Rule Breakers newsletter service. Want in? Check out a 30-day trial subscription. If that's not up your alley just yet, you can still check out a free special report detailing the next trillion-dollar revolution.
Either way, come back next week to learn about more stocks that blew the market away in the coming days.
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