Seven industry-leading stocks reporting earnings this week

By James Dennin for Kapitall.

Geopolitical strife kept stocks down through the morning on Monday, despite a stock rally where S&P 500 (SPX) companies beat their earnings estimates more than 70% of the time. 

The week ahead is one of the biggest this earnings season: More than 600 companies are reporting their results, and 140 of those companies are on the S&P. 

On Tuesday, European leaders are meeting in Brussels to consider whether tougher sanctions on Russia might prevent the conflict in Ukraine from escalating further after pro-Russian rebels shot down a civilian aircraft last week. The situation in Gaza is similarly grim. 

Taken together, it's easy to see why investors are being skittish. However, given the S&P's record thus far, it also seems likely that more earnings surprises could happen. So with that in mind, we screened the stocks reporting earnings this week. 

To do that, we limited the universe to stocks above a market cap of $2 billion with profit margins that beat their industry average by at least 5%. Do you think they'll continue to outperform their peers? Use the list below to begin your analysis and let us know what you think in the comments. 

Click on the interactive chart to view data over time. 

 

1. Altera Corp. ( ALTR): Designs, manufactures, and markets programmable logic devices (plds); structured application-specific integrated circuit devices; predefined design building blocks or intellectual-property cores; and associated development tools. Market cap at $10.95B, most recent closing price at $34.97.  

Earnings: July 24

TTM gross margin at 70.44% vs. industry average at 59.1%.

TTM operating margin at 27.13% vs. industry average at 20.11%.

TTM pretax margin at 27.13% vs. industry average at 19.09%.  

 

2. Choice Hotels International Inc. ( CHH): Operates as a hotel franchisor worldwide. Market cap at $2.87B, most recent closing price at $49.06.  

Earnings: July 21

TTM gross margin at 43.72% vs. industry average at 36.8%.

TTM operating margin at 27.05% vs. industry average at 19.34%.

TTM pretax margin at 21.92% vs. industry average at 14.18%.  

 

3. Rockwell Collins Inc. ( COL): Engages in the design, production, and support of communications and aviation electronics for commercial and military customers worldwide. Market cap at $10.81B, most recent closing price at $79.77.  

Earnings: July 22

TTM gross margin at 39.82% vs. industry average at 26.23%.

TTM operating margin at 19.24% vs. industry average at 13.35%.

TTM pretax margin at 18.42% vs. industry average at 12.04%.  

 

4. F5 Networks, Inc. ( FFIV): Provides technology that optimizes the delivery of network-based applications, and the security, performance, and availability of servers, data storage devices, and other network resources in the Americas, EMEA, Japan, and the Asia Pacific. Market cap at $8.34B, most recent closing price at $110.19.  

Earnings: July 23

TTM gross margin at 85.02% vs. industry average at 59.85%.

TTM operating margin at 28.39% vs. industry average at 20.23%.

TTM pretax margin at 28.46% vs. industry average at 17.89%.  

 

5. Hittite Microwave Corporation ( HITT): Designs and develops integrated circuits, modules, and subsystems for technically demanding radio-frequency, microwave, and millimeter-wave applications. Market cap at $2.45B, most recent closing price at $77.91.  

Earnings July 21

TTM gross margin at 72.94% vs. industry average at 59.1%.

TTM operating margin at 38.14% vs. industry average at 20.11%.

TTM pretax margin at 37.88% vs. industry average at 19.09%.  

 

6. O'Reilly Automotive Inc. ( ORLY): Engages in the retail of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. Market cap at $16.21B, most recent closing price at $152.83.  

Earnings: July 23

TTM gross margin at 53.56% vs. industry average at 37.24%.

TTM operating margin at 16.78% vs. industry average at 10.48%.

TTM pretax margin at 16.1% vs. industry average at 9.43%.  

 

7. Union Pacific Corporation ( UNP): Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, provides rail transportation services in North America. Market cap at $91.86B, most recent closing price at $101.34.  

Earnings: July 24

TTM gross margin at 42.46% vs. industry average at 36.6%.

TTM operating margin at 34.36% vs. industry average at 25.68%.

TTM pretax margin at 32.55% vs. industry average at 22.5%.  

 

(List compiled by James Dennin. Monthly returns sourced from Zacks Investment Research, all other data sourced from Finviz.)

Kapitall Wire is a division of New Kapitall Holdings, LLC. Kapitall Generation, LLC is a wholly owned subsidiary of New Kapitall Holdings, LLC. Kapitall Wire offers free investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by New Kapitall Holdings, LLC, and its affiliate companies.

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