5 Stocks Poised to Beat the Street
Karen is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
So far there've been no big surprises this earnings season. The market has already factored in the retail sector’s weakness along with the gains industrial and manufacturing continue to make. Investors closely watch technology stocks and hope that any changes in earnings estimates will be positive.
The one big surprise this summer would be if Apple (NASDAQ: AAPL) wasn’t at the top of the beat the street list. The richest company in the world will release their 3d quarter earnings July 24th after the market closes at 5 pm ET. Apple has topped earnings estimates 13 out of the past 14 quarters, and posted record profits the past two quarters.
The Street is looking for an EPS of $10.34 per share and revenue of $37.6 billion versus Apple’s estimate of $8.68 EPS and revenue of $34 billion. Sales of the iPhone and iPad have been hot hot hot and, with the iPad trademark infringement lawsuit finally settled, Apple should start seeing increased iPad sales out of China.
Apple has a habit of releasing new products after their 3rd quarter earnings conference call. If they stay true to form, Mountain Lion, the successor to OS X Lion, may be released this month.
Broadcom (NASDAQ: BRCM), a leading semiconductor manufacturer for wired and wireless communications, is set to top estimates for the second consecutive quarter. The company will released its 2nd quarter financials on July 24, 2012, at 4:45 pm ET.
Despite the slowdown in the semiconductor sector, Broadcom’s net income rose for the past three quarters. Street analysts predict an earnings per share of $.40 and revenue of $1.81 billion.
Broadcom’s biggest growth normally occurs during the second quarter and last year’s 2nd quarter revenue rose 54.3% from 2nd quarter 2010. Based on the company's steadily rising net income, Broadcom is well positioned to exceed street expectations again.
As the world’s leading analog chip maker, Texas Instruments (Nasdaq:TXN) chips are used in everything from washing machines, telecommunications equipment and space hardware, so a weakness in one sector will have only minimal effect on the companies’ financials.
Analysts are predicting a profit of $0.34 a share on $3.36 billion in revenue, while Texas Instruments estimates come in at $0.32-$0.36 a share and revenue between $3.28 billion to $3.36 billion.
The company beat street estimates in the 1st quarter 2012 and, despite weakening economic indicators, has seen no slowdown in their orders. There’s every reason to believe that Texas Instruments will exceed analyst’s expectations again. The earnings conference is scheduled for July 25, 2012.
Teradata (NYSE: TDC) has beat analyst estimates five quarters in a row and, after their earnings conference scheduled for August 2nd at 8:30 am ET, should exceed expectations again.
The company is well positioned in the high-growth markets of data warehousing, big data analytics and integrated market management. Teradata has seen double-digit YoY revenue growth for the past 6 quarters and net income has increased in the five consecutive quarters.
Analysts are looking for a profit of $0.65 per share and revenue of $661.7 million. If Teradata’s past is any indication, the company will beat the street again.
A leading specialty pharmaceutical company, Watson Pharmaceuticals (NYSE: ACT) develops, manufacturers, markets, sells and distributes their pharmaceutical products worldwide.
Analysts are looking for $1.34 profit per share on $1.8 billion in revenue. Watson has beaten the street for the past three quarters and is on track to do it again. Revenue rose for the past four quarters and net income rose in two straight quarters.
Watson’s earnings conference is scheduled for July 26th at 8:30 am ET.
The five stocks featured here have solid track records of exceeding street estimates quarter after quarter. Despite a slowing economy, these companies are on track to repeat their success again.
kprogers has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple. Motley Fool newsletter services recommend Apple and Teradata. 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.If you have questions about this post or the Fool’s blog network, click here for information.