3 Companies that Look Appealing Based on Earnings

Brittney Barrett  |

In a volatile market, a company’s earnings can be a better indicator of its value and potential to succeed than it current share price. This is often the reason why earnings can rise and fall radically in advance of and in the days following an earnings report. A well-timed investment around the time a report is released can help investors snap up a stock that appears primed for continued growth and demand, before the share price matches or exceeds growth potential. Below are three companies that are either about to release earnings or have recently posted them that look well positioned to make gains in the remainder of the year.


Men’s Wearhouse Inc. (MW)- Men’s Wearhouse was climbing in advance of earnings today. The company is expected to release positive figures tomorrow. Retail has been among the few sectors that continue to release relatively solid numbers and MW appears to be among the companies thriving in the current environment. Analysts are anticipating MW to report per-share earnings shares up 15.3 percent year over year to $0.98. Second quarter revenues are projected to total $643.6 million or a nearly 20 percent increase on the year-ago-period.  Analysts have an eight quarter history of underestimating EPS for MH. While shares are up around 30 percent for the year, the Men's Wearhouse looks like it continues to climb following earnings in the event they exceed expectations.


VeriFone Systems Inc. (PAY))- Verifone has been on the rise following the company’s earnings report yesterday. VeriFone is still around 30 percent beneath March highs, but things look healthier than ever for the   holding company. VeriFone is engaged in secure electronic payment solutions and services for the financial, retail, hospitality, petroleum, transportation, government, and healthcare vertical markets. Its system solutions are comprised of point of sale (POS) electronic payment devices that run its and third-party operating system. Investors have been bullish on VeriFone after fiscal third-quarter profit reached $26.3 million, or 28 cents a share, on $316.9 million in revenue.

During the year-ago-period the electronic payment provider earned only $18.5 million or 21 cents a share, on sales of $261.5 million. Excluding one-time items, VeriFone's earnings were around 49 cents a share, exceeding Wall Street expectation of 46 cents a share in earnings on revenue of $299.2 million.  Beyond that, investors were encouraged by cool assurances from VeriFone's chief regarding the health of the company and the issuance of optimistic in-line EPS guidance for 4th quarter indicating PAY will likely finish the year off strong.

Williams Cos. (WMB)- Williams's latest announcement indicated that the company would be shifting its structure to a "high-dividend, high-growth infrastructure company," according to the President and CEO Alan Armstrong.  Williams revealed plans to boost the annual dividend on its common stock by 25 percent to $1 per share from its previous 80 cents beginning in December of this year.  Williams's intentions to spin off upstream exploration and production business and take the department public by the start of 2012 has also bolstered investor sentiment. Shares have been on the rise since Tuesday after-hours and have continued into this morning.


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