Earnings: 12 Dividend Stocks Reporting This Week With 4 Consecutive Quarter Surprises

Question: If firms have now reported 4 consecutive quarters of positive earning surprises, are investors continually undervaluing them? If you think history is likely to repeat itself, you may be interested in the following stock list.

We created a list of dividend stocks (yields above 1%) that are reporting earnings in the second half of this week (Oct 17-19). We then searched these names for those with a history of positive earnings surprises.

The concept of an earnings surprise is pretty straight-forward – the quarterly earnings come out, and earnings analysts are “surprised” by how they don’t match up to their predictions. “Surprise” doesn’t necessarily have to mean shocking either, it can be the difference of a few cents between what earning analysts predicted and what the company actually reports. To be clear, earnings typically refer to after-tax net income.

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The following companies will report their earnings within the week. Do you think they can post a fifth consecutive quarter of positive surprises? It would be quite a feat.

Use this list as a starting point for your own analysis.

Interactive Chart: Use the Compar-O-Matic to compare analyst ratings for the stocks mentioned below:

1. GATX Corp. (GMT, Earnings, Analysts, Financials): Operates, and manages assets in the rail, marine, and industrial equipment markets. In Sep 2011: Reported EPS at 0.67 vs. estimate at 0.61 (surprise of 9.8%). In Dec 2011: Reported EPS at 0.62 vs. estimate at 0.55 (surprise of 12.7%). In Mar 2012: Reported EPS at 0.69 vs. estimate at 0.49 (surprise of 40.8%). In Jun 2012: Reported 0.8 vs. estimate at 0.61 (surprise of 31.1%. [Average earnings surprise at 23.6%]. Dividend yield at 2.78%. Earnings date: Oct 18.

2. Xilinx Inc. (XLNX, Earnings, Analysts, Financials): Designs, develops, and markets programmable platforms in North America, the Asia Pacific, Europe, and Japan. In Sep 2011: Reported EPS at 0.47 vs. estimate at 0.44 (surprise of 6.8%). In Dec 2011: Reported EPS at 0.47 vs. estimate at 0.37 (surprise of 27%). In Mar 2012: Reported EPS at 0.49 vs. estimate at 0.41 (surprise of 19.5%). In Jun 2012: Reported 0.47 vs. estimate at 0.45 (surprise of 4.4%. [Average earnings surprise at 14.43%]. Dividend yield at 2.65%. Earnings date: Oct 17.

3. Dover Corp. (DOV, Earnings, Analysts, Financials): Manufactures and sells industrial products and components, and consumables. In Sep 2011: Reported EPS at 1.21 vs. estimate at 1.12 (surprise of 8%). In Dec 2011: Reported EPS at 1.12 vs. estimate at 1.03 (surprise of 8.7%). In Mar 2012: Reported EPS at 1.05 vs. estimate at 1.02 (surprise of 2.9%). In Jun 2012: Reported 1.15 vs. estimate at 1.13 (surprise of 1.8%. [Average earnings surprise at 5.35%]. Dividend yield at 2.5. Earnings date: Oct 17.

4. ManpowerGroup (MAN, Earnings, Analysts, Financials): Provides employment services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific region. In Sep 2011: Reported EPS at 0.97 vs. estimate at 0.94 (surprise of 3.2%). In Dec 2011: Reported EPS at 0.98 vs. estimate at 0.87 (surprise of 12.6%). In Mar 2012: Reported EPS at 0.5 vs. estimate at 0.35 (surprise of 42.9%). In Jun 2012: Reported 0.76 vs. estimate at 0.71 (surprise of 7%. [Average earnings surprise at 16.42%]. Dividend yield at 2.44%. Earnings date: Oct 19.

5. Sensient Technologies Corporation (SXT, Earnings, Analysts, Financials): Together with its subsidiaries, manufactures and markets colors, flavors, and fragrances worldwide. In Sep 2011: Reported EPS at 0.64 vs. estimate at 0.62 (surprise of 3.2%). In Dec 2011: Reported EPS at 0.57 vs. estimate at 0.56 (surprise of 1.8%). In Mar 2012: Reported EPS at 0.58 vs. estimate at 0.57 (surprise of 1.8%). In Jun 2012: Reported 0.76 vs. estimate at 0.71 (surprise of 7%. [Average earnings surprise at 3.45%]. Dividend yield at 2.42%. Earnings date: Oct 19.

6. Union Pacific Corporation (UNP, Earnings, Analysts, Financials): Through its subsidiary, Union Pacific Railroad Company, provides rail transportation services in North America. In Sep 2011: Reported EPS at 1.85 vs. estimate at 1.81 (surprise of 2.2%). In Dec 2011: Reported EPS at 1.99 vs. estimate at 1.82 (surprise of 9.3%). In Mar 2012: Reported EPS at 1.79 vs. estimate at 1.63 (surprise of 9.8%). In Jun 2012: Reported 2.1 vs. estimate at 1.97 (surprise of 6.6%. [Average earnings surprise at 6.98%]. Dividend yield at 1.98%. Earnings date: Oct 18.

7. Snap-on Inc. (SNA, Earnings, Analysts, Financials): Manufactures and markets tools, diagnostics, equipment, software, and service solutions for professional users in the United States, the United Kingdom, Canada, Germany, Japan, France, Australia, Spain, the Netherlands, Italy, China, and Sweden. In Sep 2011: Reported EPS at 1.16 vs. estimate at 1.03 (surprise of 12.6%). In Dec 2011: Reported EPS at 1.27 vs. estimate at 1.17 (surprise of 8.5%). In Mar 2012: Reported EPS at 1.21 vs. estimate at 1.16 (surprise of 4.3%). In Jun 2012: Reported 1.3 vs. estimate at 1.2 (surprise of 8.3%. [Average earnings surprise at 8.42%]. Dividend yield at 1.87%. Earnings date: Oct 18.

8. Pool Corp. (POOL, Earnings, Analysts, Financials): Operates as a wholesale distributor of swimming pool supplies, equipment, and related leisure products in North America and Europe. In Jun 2011: Reported EPS at 1.19 vs. estimate at 1.15 (surprise of 3.5%). In Sep 2011: Reported EPS at 0.5 vs. estimate at 0.48 (surprise of 4.2%). In Dec 2011: Reported EPS at -0.21 vs. estimate at -0.22 (surprise of 4.5%). In Mar 2012: Reported 0.08 vs. estimate at 0.01 (surprise of 700%. [Average earnings surprise at 178.05%]. Dividend yield at 1.56%. Earnings date: Oct 18.

9. Ingersoll-Rand Plc (IR, Earnings, Analysts, Financials): Engages in the design, manufacture, sale, and service of a portfolio of industrial and commercial products in the United States and internationally. In Sep 2011: Reported EPS at 0.81 vs. estimate at 0.79 (surprise of 2.5%). In Dec 2011: Reported EPS at 0.76 vs. estimate at 0.66 (surprise of 15.2%). In Mar 2012: Reported EPS at 0.31 vs. estimate at 0.25 (surprise of 24%). In Jun 2012: Reported 1.15 vs. estimate at 0.91 (surprise of 26.4%. [Average earnings surprise at 17.03%]. Dividend yield at 1.44%. Earnings date: Oct 19.

10. American Express Company (AXP, Earnings, Analysts, Financials): Provides charge and credit payment card products, and travel-related services worldwide. In Sep 2011: Reported EPS at 1.03 vs. estimate at 0.96 (surprise of 7.3%). In Dec 2011: Reported EPS at 1.01 vs. estimate at 0.99 (surprise of 2%). In Mar 2012: Reported EPS at 1.07 vs. estimate at 1 (surprise of 7%). In Jun 2012: Reported 1.15 vs. estimate at 1.09 (surprise of 5.5%. [Average earnings surprise at 5.45%]. Dividend yield at 1.39%. Earnings date: Oct 17.

11. GNC Holdings Inc. (GNC, Earnings, Analysts, Financials): Operates as a specialty retailer of health and wellness products. In Sep 2011: Reported EPS at 0.46 vs. estimate at 0.36 (surprise of 27.8%). In Dec 2011: Reported EPS at 0.35 vs. estimate at 0.3 (surprise of 16.7%). In Mar 2012: Reported EPS at 0.6 vs. estimate at 0.52 (surprise of 15.4%). In Jun 2012: Reported 0.62 vs. estimate at 0.52 (surprise of 19.2%. [Average earnings surprise at 19.78%]. Dividend yield at 1.11%. Earnings date: Oct 17.

12. Trinity Biotech plc (TRIB, Earnings, Analysts, Financials): Develops, manufactures, distributes, and sells diagnostic test kits and instrumentation worldwide. In Sep 2011: Reported EPS at 0.18 vs. estimate at 0.16 (surprise of 12.5%). In Dec 2011: Reported EPS at 0.18 vs. estimate at 0.17 (surprise of 5.9%). In Mar 2012: Reported EPS at 0.19 vs. estimate at 0.17 (surprise of 11.8%). In Jun 2012: Reported 0.2 vs. estimate at 0.19 (surprise of 5.3%. [Average earnings surprise at 8.88%]. Dividend yield at 1.08%. Earnings date: Oct 18.

Written by Rebecca Lipman. EPS data sourced from Yahoo! Finance, all other data sourced from Finviz.

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