Do you like following the earnings announcements of various companies? If you believe that a company's earnings can consistently surprise the market quarter after quarter, here's a list you might be interested in.
We ran a screen on the biotech industry for stocks with a history of positively surprising the market with higher-than-expected earnings reports over the last four quarters.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.
Do you think these companies will surprise yet again? Use this list as a starting point for your own analysis.
1. Alexion Pharmaceuticals, Inc. (ALXN): Engages in the discovery, development, and commercialization of biologic therapeutic products in the United States, Europe, Latin America, Japan, and the Asia Pacific. In Mar 2011: Reported EPS at 0.3 vs. estimate at 0.25 (surprise of 20%). In Jun 2011: Reported EPS at 0.29 vs. estimate at 0.27 (surprise of 7.4%). In Sep 2011: Reported EPS at 0.37 vs. estimate at 0.29 (surprise of 27.6%). In Dec 2011: Reported 0.41 vs. estimate at 0.34 (surprise of 20.6%). [Average earnings surprise at 18.9%].
2. Obagi Medical Products, Inc. (OMPI): Develops and markets topical aesthetic and therapeutic prescription skin care systems. In Dec 2010: Reported EPS at 0.14 vs. estimate at 0.09 (surprise of 55.6%). In Mar 2011: Reported EPS at 0.16 vs. estimate at 0.13 (surprise of 23.1%). In Jun 2011: Reported EPS at 0.18 vs. estimate at 0.16 (surprise of 12.5%). In Sep 2011: Reported 0.24 vs. estimate at 0.17 (surprise of 41.2%). [Average earnings surprise at 33.1%].
3. Questcor Pharmaceuticals, Inc. (QCOR): Provides prescription drugs for central nervous system and inflammatory disorders. In Mar 2011: Reported EPS at 0.2 vs. estimate at 0.17 (surprise of 17.6%). In Jun 2011: Reported EPS at 0.23 vs. estimate at 0.2 (surprise of 15%). In Sep 2011: Reported EPS at 0.37 vs. estimate at 0.26 (surprise of 42.3%). In Dec 2011: Reported 0.47 vs. estimate at 0.42 (surprise of 11.9%). [Average earnings surprise at 21.7%].
*Earnings data sourced from Yahoo! Finance, all other data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.