Please ensure Javascript is enabled for purposes of website accessibility

3 Stocks That Blew the Market Away

By Rick Munarriz - Apr 1, 2013 at 11:03AM

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 three companies posted better-than-expected results.

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 SAIC (NYSE: SAI)The government services contractor cranked out a profit of $0.54 a share from continuing operations, besting the $0.52 a share that analysts were forecasting. SAIC had come up short on the bottom line in its previous quarterly outings, so the positive report was a welcome surprise.

SAIC's guidance for the year ahead wasn't as kind, but it did sweeten the pot by declaring a special one-time dividend of $1 a share. SAIC is in the process of separating its government information technology services unit from its work assisting national security.

We also have BlackBerry (BB 5.54%) stunning the market with an actual quarterly profit.

Analysts were betting on more red ink after the smartphone pioneer served up three consecutive quarterly losses. However, BlackBerry came through with adjusted net income of $0.22 a share from continuing operations.

It wasn't a perfect report. BlackBerry closed out the period with 3 million fewer subscribers than it had when the quarter began. Revenue tumbled 36%, and you have to go back a couple of years to find the last time that BlackBerry only shipped out 6 million devices.

But it was still a solid beat on the bottom line, and that's what counts here.

Finally, we have GameStop (GME 2.94%) defying gravity. Despite a decline in same-store sales, profitability climbed to $2.16 a share. Wall Street was only perched at $2.09 a share. The video game industry is still in flux, and the specialty retailer's outlook is far from encouraging. However, the stock still hit a 52-week high on Thursday after delivering the well-received report.

Moving in the right direction
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.

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

BlackBerry Stock Quote
$6.00 (5.54%) $0.32
GameStop Corp. Stock Quote
GameStop Corp.
$94.50 (2.94%) $2.70

*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 service.

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 05/17/2022.

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.