It’s not a perfect world out there for investors, but things may be starting to get better.
The Dow and S&P 500 both hit new highs last week as investors shrugged off uninspiring global economic news to push the leading market gauges higher.
I recently went over some of the companies that are expected to post lower quarterly profits when they report this week. Thankfully, they’re the exceptions and not the rule.
Let’s go over some publicly traded companies that are expected to stand tall this week by posting year-over-year improvement on the bottom line.
|Company||Latest Quarter EPS (estimated)||Year-Ago Quarter EPS|
|Consumer Portfolio Services, Inc. (NASDAQ:CPSS)||$0.11||$0.02|
|Joe’s Jeans Inc (NASDAQ:JOEZ)||$0.02||$0.00|
|SanDisk Corporation (NASDAQ:SNDK)||$0.77||$0.63|
|Intuitive Surgical, Inc. (NASDAQ:ISRG)||$3.99||$3.50|
|Chipotle Mexican Grill, Inc. (NYSE:CMG)||$2.14||$1.97|
Clearing the table
Let’s start at the top with Consumer Portfolio Services. Shares of the auto loan financier took a hit two weeks ago after a Reuters article cast the subprime auto loan industry in an unflattering light. Consumer Portfolio Services takes on a lot of risky loans from car buyers that would get turned down from traditional financing providers.
The good news for investors is that the risks are apparently paying off these days. Wall Street sees a dramatic spike in profitability.
Joe’s Jeans puts out premium denim. Who has the money to buy a $575 denim jacket or a $210 pair of pre-shredded vintage jeans? Well, a lot of people are apparently having no problem with Joe’s high prices.
Net sales soared 33% during the company’s holiday quarter, fueled by a 6% increase in same-store sales, retail expansion, and a robust 37% spike in wholesale net sales. There’s little to reason to expect the trend to reverse. Despite its tiny share price, Joe’s Jeans has been consistently profitable since late 2006.
SanDisk Corporation (NASDAQ:SNDK) is the global leader in flash memory. The popularity of flash storage is undeniable. The trend toward flash that gained momentum with digital cameras and netbooks a few years ago has exploded in this age of tablets and smartphones. Things haven’t always been easy for SanDisk, especially at times when competitors break into cutthroat pricing battles. The climate is kinder these days. Wall Street sees a 22% pop in net income this quarter.
Intuitive Surgical is the company behind the da Vinci surgical system that’s been a popular addition at state-of-the-art hospitals. The robotic surgical arm is approved for a growing number of procedures. The shares took a hit earlier this year on reports that the FDA was probing instances at key hospitals where adverse incident reports were high for procedures involving Intuitive Surgical’s platform. A strong report would silence the skeptics.