Wall Street Watch Friday: This Company Made the Analysts Look Silly

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It's pretty common to see a company beat analyst targets. It's another thing entirely to watch a company completely obliterate Wall Street's forecasts.

Analogic (ALOG) blew past the prognosticators on Thursday after the market close. The medical imaging and aviation security technology specialist saw its fiscal fourth quarter revenue climb 12% to $151 million. That may not seem like much, but the market was only holding out for a 4% top-line uptick.

Things get even more refreshingly surprising on the way down the income statement. Analogic's profitability more than doubled to $0.96 a share. Wall Street was only forecasting net income of $0.71 a share.

The market was rightfully surprised. Analysts had actually come up short in two of the company's three prior quarters. There didn't seem to be any reasons to expect a blowout quarter out of Analogic. Budget-strapped hospitals have been stingy in their expenditures and it's not as if there were any recent commercial airplane disasters to trigger a run on the company's computed tomography systems that detect checked baggage for explosives.

There's nothing like humbling the Wall Street professionals modeling your financial performance.

Other Things Worth Watching

• Sometimes you have to put the "stop" in stop-motion animation. Disney's (DIS) CFO revealed that the family entertainment giant would be booking a $50 million charge for shutting down a film that was currently in production. Speaking at an investor conference on Thursday afternoon, Jay Rasulo said that the company's new studio chairman made the call to nix the project being helmed by the director of Coraline. Disney has taken bigger charges for completed films in the past after John Carter and Mars Needs Moms bombed at the box office last year.

• Reactions may have been mixed with Apple's (AAPL) iPhone 5 announcement on Wednesday, but that didn't stop the stock from racing to new all-time highs late on Thursday. Despite plenty of exciting features and long overdue upgrades, some fans were let down that the larger four-inch screen is still smaller than some of the more popular Samsung Android smartphones. Apple also didn't go with the trendy NFC chips that make it easier to swap data and complete transactions. It won't matter to true Apple fans, though. They'll be lining up to buy the new phone when it hits stores next Friday.



Motley Fool contributor Rick Munarriz does not own shares in any of the stocks in this article, except for Disney. The Motley Fool owns shares of Walt Disney and Apple. Motley Fool newsletter services have recommended buying shares of Apple and Walt Disney. Motley Fool newsletter services have recommended creating a bull call spread position in Apple.

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6 Comments

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RJM

"It won't matter to true Apple fans, though. They'll be lining up to buy the new phone when it hits stores next Friday."

That's because they're sheep and they follow the fad item du jour.

September 15 2012 at 3:33 AM Report abuse rate up rate down Reply
cqdeed

It would appear that no one at Analogic talked. I think the "analysists" on Wall Street tend to rely on leaks.

September 14 2012 at 4:53 PM Report abuse rate up rate down Reply
Ayesha Khan

Presently there are no fundamentals, nor any technical 's therefore, it is next to impossible even for the finest analyst's to predict, or determine any the directions of the stock markets. Things are changing so rapidly that any forecast would be a heavy risk. It would be a prudent approach that the average investor should refrain from investing in the markets until things are stabilize on world wide basis---There are lots of people who might show one a green picture for their personal advantage which is a highly immoral and a dishonest approach. One must use their own logic, and resources to find the intricacies of these markets, and remain alert with the factors that are most essential for their movements---Precaution is better than cure----

September 14 2012 at 4:24 PM Report abuse rate up rate down Reply
weatherdiva

Considering this is a company that sells the ultrasound probe, "endrocavity search probe" used after state after state passage of bills requiring the use of this probe on every woman with a "female" problem....is it any wonder that the company did well? I expect our fine governor owns stakes in it. Wouldn't suprise me that was the reason for the "emergency" passage of this bill in our state.
I'm pretty sure I won't be flying anymore since the precedent has been set and put into place for women's health. The "safety" reason can't be far behind for you gentlemen.

September 14 2012 at 3:54 PM Report abuse +1 rate up rate down Reply
tmlbtb

Wallstreet continually tries to manipulate the market to move money to their investors. They should be disbanded, but we all know they won't. They have bought off Congress from the day Wallstreet was established. Until that changes, nothing will get done for the rest of the 99%.

September 14 2012 at 2:16 PM Report abuse +2 rate up rate down Reply
captmerit

bubble

September 14 2012 at 9:30 AM Report abuse rate up rate down Reply