Please ensure Javascript is enabled for purposes of website accessibility

Investor Beat, Feb. 26, 2014

By Chris Hill – Feb 26, 2014 at 6:56PM

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

The top business stories from Wednesday's market, for today's Foolish investor.

DreamWorks Animation 's fourth-quarter earnings came in lower than expected, with its movie Turbo taking the blame. Despite pulling in $280 million internationally, the cost to produce the film meant that just wasn't enough. And with the stock up more than 100% in the past year, the market will look poorly on any earnings miss.

In the lead story from Wednesday's Investor Beat, host Chris Hill and Motley Fool analyst Bill Barker look at DreamWorks over the past year, and what it has moving ahead. While Chris is less than optimistic that its next feature, Mr. Peabody & Sherman, will be a game-changer for the company, Bill notes that this game is more about expectations than performance.

Then, food industry equipment company Middleby hit an all-time high today after the company announced in its Q4 earnings report that profits were up 36%, and revenue was up nearly 40%. Bill notes that the addressable market for the company is enormous and continuing to grow both domestically and internationally, and the guys also discuss the company's incredible execution of its growth-by-acquisition strategy over the years. While an all-time high may look intimidating for investors, Bill still sees the possibility of another 10-year run for the company that could be just as impressive as its past 10 years.

Also, fourth-quarter profits came in lower than expected for Boston Beer, and the company lowered guidance as well, but the market didn't react nearly as badly as it could have. Bill looks behind the scenes and points to one of the best problems a company can have -- more demand than it was able to easily meet. He discusses the company's strategy, whereby, instead of just leaving demand unmet, it spent a bit extra to meet demand, even if there were some inefficiencies along the way.

And finally, Bill discusses TRI Pointe Homes and tells investors why this California-based homebuilder is lighting up on his radar this week.

Bill Barker and Chris Hill have no position in any stocks mentioned. The Motley Fool recommends Boston Beer, DreamWorks Animation, and Middleby and owns shares of Boston Beer and Middleby. We Fools don't 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.

Stocks Mentioned

Boston Beer Stock Quote
Boston Beer
SAM
$379.70 (-2.32%) $-9.02
Middleby Stock Quote
Middleby
MIDD
$140.38 (-2.47%) $-3.56
TRI Pointe Homes Stock Quote
TRI Pointe Homes
TPH
$18.11 (-3.46%) $0.65
DreamWorks Animation SKG Inc. Stock Quote
DreamWorks Animation SKG Inc.
DWA

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

Related Articles

Premium Investing Services

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