Please ensure Javascript is enabled for purposes of website accessibility

3 Stocks That Blew the Market Away

By Rick Munarriz – Dec 3, 2012 at 10:51AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

These companies earned a lot more than analysts were expecting.

Don't settle for ordinary quarterly reports.

Every week, I take a look at three companies that beat market expectations, 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 TiVo (TIVO).

The DVR pioneer was expected to post a widening deficit of $0.22 a share. TiVo came through with a huge profit, though it was entirely the handiwork of a massive $78.4 million that came in as part of a $250 million settlement from Verizon (VZ -2.34%). One of the neat things about TiVo is that it's rich in patents that cable and satellite television providers need if they want to offer many of the basic DVR functions.

Backing out the money that Verizon shelled out to get its FiOS broadband television service off the ground -- as investors should -- TiVo posted a loss, but it was much smaller than the $27 million to $29 million deficit that it was originally projecting.

Green Mountain Coffee Roasters (GMCR.DL) is also percolating nicely. Shares of the company behind the Keurig single-cup brewer soared 30% last week after it poured out blowout quarterly results.

Wall Street figured that the java giant would earn just $0.48 a share, just ahead of the $0.47 a share it served up a year earlier.

Nope. Adjusted earnings soared 36% to $0.64 a share.

Finally, we have Workday (WDAY 0.03%) not calling in sick for its first quarterly report as a public company. The provider of cloud-based enterprise software solutions has been a big winner since going public at $28 less than two months ago. Workday's quarterly loss of $0.39 a share may not seem all that impressive, but the pros were betting on $0.57 a share in red ink.

Longtime Fool contributor Rick Aristotle Munarriz owns shares of Green Mountain Coffee Roasters. The Motley Fool owns shares of Green Mountain Coffee Roasters. Motley Fool newsletter services recommend Green Mountain Coffee Roasters and TiVo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

TiVo Stock Quote
Keurig Green Mountain, Inc. Stock Quote
Keurig Green Mountain, Inc.
Workday Stock Quote
$159.50 (0.03%) $0.05
Verizon Communications Stock Quote
Verizon Communications
$37.84 (-2.34%) $0.91

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.