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 Liberty Media (NAS: LMCA) .
The diversified media holding company posted a quarterly profit of $3.93 a share in its latest quarter, well ahead of the $0.33 a share that the market was expecting. The one-time recognition of previously deferred revenue and costs at TruePosition made up the lion's share of the beat, but Liberty Media keeps growing nicely. Its stake in Sirius XM Radio (NAS: SIRI) was worth a whopping $5.4 billion last week, making satellite radio its largest component.
American Tower (NYS: AMT) also beat the professionals. The company watches over 40,000 communication towers that it leases out primarily to wireless carriers and radio stations. American Tower's quarterly profit of $0.51 a share blew past the net income of $0.30 a share that Wall Street was targeting. Now that American Tower is structured as a REIT -- passing through most of its earnings to investors -- this strong report may lead to a dividend hike down the road.
Finally we have Garmin (NAS: GRMN) finding its way. The GPS market leader stunned jaded investors by earning $0.96 a share in its latest quarter. Analysts figured that profitability would decline to $0.64 a share. It may be premature to call this a permanent turnaround at Garmin, but it's clear that the company isn't dying as quickly as bears believe.
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. 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.
At the time thisarticle was published Motley Fool newsletter serviceshave recommended buying shares of American Tower. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story, except for Liberty Media. Rick is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
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