Strong Post-Earning Performers that Could Continue to Perform

Brian is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.

Citigroup, Bank of America, and eBay were the most highly anticipated earnings yesterday, but none of these was the most impressive -- there were several other companies that truly set themselves apart. In this article I am looking at several of these companies, and what it could mean for their stock.

ASML Holding (NASDAQ: ASML)

In my opinion, ASML Holding provided us with one of the best quarters of the day. The stock initially trended lower following its report after missing expectations. However, the company guided for a boost in sales during 2013, due to a pickup in demand during the second half of the year.

Over the last few months there have been some concerns that the semiconductor company’s demand for its advanced 14-20nm processors is diminishing. The company’s guidance now paints a pretty picture for both the company and several other semiconductor companies. Therefore, it’s a stock to watch for further gains throughout the remainder of this year due to rising demand.

Nu Skin Enterprises (NYSE: NUS)

Nu Skin did not announce earnings on Thursday, but the company did provide an update, saying it expects Q4 EPS of $0.94-$0.96. This is high above the consensus of $0.83 for the quarter. Furthermore, the company is expecting revenue of $588 million, a 19% gain year-over-year, which is also more than $55 million above the consensus.

Despite Nu Skin having a record year in 2012 and saying that it expects yet another record year in 2013, the stock has been quite volatile over the last year. This is a stock with gains of 190% over the last five years, but one that has lost over 22% of its value since April of 2012. Therefore, because of its fundamental gains, and a forward P/E ratio of just 11.79, this is a stock that could trade considerably higher in the year ahead.

Fastenal (NASDAQ: FAST)

Fastenal did not trade significantly higher after earnings; actually, it closed the day near flat. However its earnings were impressive nonetheless. The company saw its net profit rise 12.9% and opened 80 new stores in 2012. The company said that it expects to open another 65-80 stores in 2013, which should all perform as well as the new stores opened in 2012.

The reason that Fastenal falls into the conversation is that it managed to increase sales despite slowing momentum within the industry due to the effects of Hurricane Sandy. As a result, I wonder how strong sales might have been minus the superstorm. All in all, I think it was a very strong quarter for a solid company in a struggling sector, which makes it impressive.

BlackRock (NYSE: BLK)

There’s not much negative you can say about BlackRock’s performance during its last quarter. The company saw its revenue increase 14% and beat EPS expectations by $0.26. The company improved its operating margins by 190 basis points and significantly grew emerging markets and China.

Aside from posting an incredible quarter, the company continues to be shareholder friendly in a financial industry that almost never returns significant capital to shareholders. The company increased its dividend by 12% and now has a forward yield of 3.02%. As a result, the stock is now sitting at 52-week highs after its 4.39% gain and is deserving of every bit. This is one financial stock that could continue to rally over the next year.

Conclusion

On Thursday there were several companies that impressed the market with their earnings. These companies above slipped through the cracks due to the excitement that surrounded Bank of America, Citigroup, and then Intel after the market closed. But the four companies above set themselves apart, and are now well positioned to trade even higher. 


BrianNichols has no position in any stocks mentioned. The Motley Fool recommends BlackRock. 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. Is this post wrong? Click here. Think you can do better? Join us and write your own!

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