An earnings report "triple play" occurs when a company beats earnings estimates, beats revenue estimates, and raises guidance. Triple plays are rare, and that's why we like the stocks that report them so much. A company that beats bottom and top line estimates and also raises guidance is a company that we want to look into more as a potential long opportunity.
So far this earnings season, there have been just six "triple plays" -- EDU, VMW, PII, IBM, ISRG, and CTAS. This represents just 4.6% of the total number of companies that have reported this season. Below we highlight the percentage of stocks that have reported "triple plays" on a quarterly basis going back to Q4 '01. As shown, the 4.6% reading seen so far this quarter would be the lowest quarterly reading since the bull market began if it holds. There's still plenty of time left for companies to pick it up, however, so we're not too concerned about the drop off yet.
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