This morning, Honda Motor (HMC) reported a stunning 96% drop in earnings. As bad as that was, it actually beat expectations.
This is exactly what I told readers of my Quick-Hit Earnings Trades to expect. I also told to readers to expect a big earnings surprise on August 4 from LHC Group (LHCG). (If you haven’t signed up for this free service, make sure to enter your email in the box in the lower right of this page.)
While Honda is going through a rough patch, many of my favorite foreign stocks continue to do well. Yesterday, shares of Universal Travel Group (UTA) soared 23%. The stock is a strong buy in my Global Growth and Quantum Growth services.
UTA provides domestic and international airline ticketing services, as well as a cargo transportation agency. The company also provides hotel reservations and tour planning. While you might think the travel industry isn’t doing too hot right now, the stock is profiting from the booming business in China thanks to much stronger consumer spending there.
Another one of my top foreign stocks, Teva Pharmaceuticals (TEVA) reported very good earnings yesterday. I said recently that I expected Teva to report earnings growth of at least 20%. My call was much higher than Wall Street was expecting, and I was exactly right. Teva earned 83 cents a share which was a 28% increase over last year. The stock rose 4% yesterday while the broader market was down.