We’ve reach the midpoint of earnings season and companies’ quarterly reports continue to be digested by the market. To date, about 75 percent of those S&P 500 companies who have reported earnings have beat consensus estimates. Unfortunately, many of these positive surprises have come on cost-cutting measures and other one-time items that are not sustainable ways of supporting earnings. The real earnings strength has come from companies with exposure to the developing world – countries whose economic engines have once again started churning. However, today we’ll highlight two of our portfolio picks that recently published results that beat estimates despite relying much on the domestic market – remarkable exceptions to the rule.

 

FPL Group (FPL), the country’s largest producer of wind power, reported profits that beat analysts’ expectations. Excluding one-time items, which included energy price hedges, the Florida-based company reported earnings per share of 99 cents, 2 cents better than estimates.