Can These Three Companies Help Markets Rally After Earnings?

With investors waking up to a stiff decline in demand for durable goods, and an increasingly dire situation in Europe facing holders of Greek National Debt, let’s go for a distraction from macroeconomic blinders and take a look at some high profile earnings reports from yesterday.

These top companies reported earnings Tuesday:

1) Applied Materials (NASDAQ:AMAT): The big-time manufacturer and producer of capital equipments reported its second quarter earnings yesterday, and outperformed analyst estimates by a slim margin of $.01 earnings per share (actual $.38/share v. projected $.37/share). Net income rose to $489 million, up 85% from one year ago, total revenue also rose 24.7% to 286.6 over the past year to date. Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 1.2 percentage points to 41.5% from the year earlier quarter. The company has now topped analyst estimates for the last three quarters. According to Chairman and CEO Mike Splinter, ” Applied delivered one of the best quarters in the company’s history…While near-term economic conditions have tempered our growth expectations, our outlook for the year remains strong.” Keep an eye on competitors Novellus Systems, Inc. (NASDAQ:NVLS) and KLA-Tencor Corporation (NASDAQ:KLAC).

2) DSW (NYSE:DSW) : The footwear and brand name producer had its dancing shoes on for Wall Street yesterday as shares rose some 8.5% after the company reported earnings in pre-market hours. This came despite beating mean analyst estimates by just .o1-.02 cents a share earnings. Net income rose to 38.4 million last quarter while revenues totaled 503.6 million, both numbers represent substantial gains for DSW over the last financial year. “During the quarter, DSW achieved balanced growth across categories and genders with accessories and men’s leading the way. Our new stores performed well and we were also pleased with the growth in our leased business division, which generated its highest quarterly sales in over four years,” said President and CEO Mike MacDonald of the company’s impressive quarter. Keep an eye on competitors NIKE, Inc. (NYSE:NKE) Skechers USA, Inc. (NYSE:SKX).

3) TIVO (NASDAQ:TIVO) : Last but not least, the much beloved provider and developer of the technology and service behind home digital video recorders was finally able to churn out a profit this quarter, and beat mean analyst estimates. TiVo Inc. (NASDAQ:TIVO) swung to a profit of $139 million ($1.04/diluted share) in the quarter, after posting a net loss of $14.2 million or a loss 13 cents per share in the year earlier quarter. TIVO’s profit in the latest quarter follows losses in the three previous quarters. The company reported a net loss of $34.4 million in the fourth quarter of the last fiscal year, a loss of $20.6 million in the third quarter of the last fiscal year and a loss of $15.3 million in the second of the last fiscal year. TiVo shares traded up a slim margin of .04 cents in after-hours trading yesterday following release of the report. Keep an eye on competitors DISH Network Corp. (NASDAQ:DISH), Comcast Corporation (NASDAQ:CMCSA), DIRECTV (NASDAQ:DTV), and Time Warner Cable Inc. (NYSE:TWC).

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