In terms of fundamentals, companies don’t get much better than Genentech (DNA) and Infosys (INFY).  The two companies reported outstanding earnings once again after the bell yesterday and both stocks are up about 5% in premarket trading.

Infosys, the premier Indian outsourcer, reported earnings that were up 42% and revenues that were up 38% over the year ago period.  Both revenues and earnings beat analyst estimates and the company raised guidance for 2006.  It’s the kind of growth the company has been reporting every quarter with incredibly consistency for the past couple years.  Infosys is one of the highest ranked stocks fundamentally in the SelfInvestors.com database with a fundamental score of 29/30.  It’s currently in the process of carving out a base that isn’t exactly "pretty".  However, the stock should make a run at all time highs today at 78.74.

Genentech (DNA) is an equally impressive company fundamentally (score of 27/30), consistently posting earnings growth of around 50% in the last several  quarters on revenue growth of around 40%.  So, It should not have come as too much of a surprise when the company reported earnings growth of 56% quarter over quarter (beat by 5 cents) with revenue growth of 46%.  Results were driven by the two cancer fighting blockbusters Avastin (colon cancer) and Herceptin (breast cancer), which saw growth of 78% and 70% respectively in the U.S.  The company boosted ’05 full year guidance, indicating that it sees growth of 50% over ’04, much higher than the 35% growth it had indicated earlier.  The stock is currently in the process of carving out a base.

With earnings season bearing down on us, it’s time again for me to get ready for the avalanche of earnings that will ensue.. and I begin with a couple earnings reports posted after the market close earlier today in two outstanding companies.  Redhat (RHAT) and Resources Connections (RECN).

Red Hat (RHAT) is a company that saw its stock soar in 2003 as open source software caught fire in the corporate world, but the party didn’t last.  The stock fell off a cliff in ’04, dropping more than 50%.  It’s been a different story in ’05, climbing more than 50% since June.  The climb should continue with force tomorrow as the company reported earnings and sales that beat analyst estimates.  The CEO said the company is improving margins by continuing to provide software through subscription/download services and expanding market share through overseas markets.  Earnings came in at .09/share, beating estimates by  .02/share, while sales came in at 65.7 milion.  Both earnings and sales increased by 42% from the year ago quarter.  The stock is up nearly 12% in after market trading.

Resources Connection (RECN), a provider of services to companies that enable them to better comply with Sarbanes-Oxley continues to post outstanding, consistent results by posting earnings and sales growth of 30% over the year ago period after the bell today, which beat anaylst estimates.  However it doesn’t appear the stock will spike like it did after the last earnings report in July in which the company surprised by a wide margin.  The chart does look outstanding.  After running up from a large V like base to new highs in July, the stock has spent a few months consolidating in a nice, quiet base, which it broke out from on Monday.  The stock is trading close to flat after hours, but is worth keeping an eye on throughout the trading day tomorrow.

** Research in Motion (RIMM) also posted after the bell and investors were not impressed – weakening subscriber growth and rising costs were believed to the culprits in the latest report.  The stock is down nearly 4% in after hours trading.

The top ranking company reporting this morning with a rank of [54/60] is Urban Outfitters (URBN), without a doubt the best retailer around with outstanding, consistent growth every quarter for the last 3 years.  Management owns a good portion of the company (35%) and institutions continue to initiate new positions.  This morning the company is reporting inline at .36/share which is good for a 49% increase over the year ago period.  Total revenue grew 34% with same store sales growth of 10%.  The stock is down just a bit in premarket trading.

The Knot (KNOT) [Rank 50/60], is an online provider of everything wedding related and certainly a company to keep an eye on.  The company went public at the height of the dot com frenzy in December ’99, but didn’t see its first year in the black until 2003.  It struggled with consistency in 2004, but reported outstanding results for the first quarter in ’05.  Expectations are for the company to ramp up growth for ’05 and ’06 and there is no reason to think otherwise with great results posted again this morning.  The company beat the estimate of the lone analyst covering the company by .03/share by reporting .05 share, good for a 400% increase over the year ago period.  Revenues increased 25% in the quarter, driven by a 45% increase in advertisement spending.  Technically, the stock looks outstanding, although I’d like to see a bit more consolidation in the handle there.  At any rate, results should drive the stock this morning so its worth keeping an eye on.

Others reporting (in order of rank)…

Draxis Health (DRAX) & Centennial Communications (CYCL).

A few high quality names are reporting earnings this morning, led by Hansen Natural (HANS) [Rank 52/60], which is reaping big profits thanks to soaring sales of its line of energy drinks.  This morning the company is reporting earnings of .62/share, smashing estimates on a post split basis by .17/share on sales of 85.4 million, also beating estimates by a wide margin.  That’s good for a 181% increase in earnings from the year ago period and an 85% increase in revenue growth.  The stock continues to march higher and hasn’t touched down at the 50 day moving average since last March.  The stock is up another 10% in premarket trading.

[Rank 51/60]

• Berry Petroleum (BRY): The leading oil company beat estimates this morning by 2 cents a share on a revenue increase of 45% from the previous quarter.  The stock is currently carving out the right side of a fairly deep base.
• Tower Group (TWGP): One of the fastest growing companies around.. and its an insurance company!  The company is matching analyst estimates for another outstanding quarter of growth, with earnings increasing 138% (.24/share) over the year ago period on revenues of 50.3 million (92% increase).  The stock broke out to all time highs on June 9th following the first base since the IPO late last year and looks outstanding technically.
• Asta Funding (ASFI):  A leading consumer receivables asset management and liquidation company is reporting record quarter over quarter growth this morning and smashed estimates for revenue and earnings.  Earnings growth is up 52% over the year ago quarter while revenues soared 58%.  It appears the stock will get a big bounce off the 200 day moving average this morning as the stock is surging in premarket trading, up 10%.

Others worth watching (in order of rank):

Lo Jack (LOJN) – up 14% premarket, NDS Group (NNDS) – up 7% premarket, Salix Pharma (SLXP), Innkeepers USA (KPA) and Ralph Lauren (RL) – up 4% premarket.

The highest ranked company (55/60) in the entire SelfInvestors.com database reported earnings after the bell today.  That company is Quality Systems (QSII), a key player in the push to digitalizing the health care industry.  Quality Systems continues to post strong results quarter after quarter, year after year.  In fact, the company was profitable in 1999 and has increased earnings every year in the 30 – 50% range with remarkable consistency ever since.  This evening the company reported another very strong quarter – beat on earnings by .04/share and on revenues by a couple percent.  As it should, the stock is reacting positivey after hours, up nearly 6%.  As far as the base goes, it’s a bit on the short side and I’d like to see more consolidation after a quick runup in the right side.  Other than that, the volume levels look outstanding and indicate heavy accumulation over the past couple months.

One of the highest rated oil companies, Atlas America (ATLS) will report results this evening.  Considering the kind of profits being generated by other leading oil companies, there’s no reason to think that Atlas won’t beat handily as well.  The stock has carved out a real nice looking base and broke out in heavy trade a few days ago, but remains outside of an acceptable range at this point.  By the way, when was that logo designed?  I’m thinking 1984.

The Best ‘O The Rest (in order of rank)

• [49/60] Penn Virginia Resource Partners (PVR): Blow Out Earnings! Penn Virginia leases coal mines to 3rd party operators and the company absolutely blew past expectations and beat by .17/share, as earnings grew by 87% from the year ago period.  That came on soaring sales growth of 495% in the same period.  No reported change after hours, but this is one worth keeping an eye on tomorrow.  It’s currently carving out the right side of a large base.
• [49/60] Perficient (PRFT): The e-business solutions provider to businesses reported nice growth from the year ago period and beat after the bell by a penny but guided lower for Q3.  Year over year earnings and revenue growth came in at 40 and 90% respectively.  No change to report after hours.  The stock broke out on July 14th, but remains in a buyable range and near support of the 50 day moving average.
• [48/50] CNS Inc (CNXS): Blow Out Earnings! The developer of consumer health products, including the Breathe Right nasal strips is another company that blew away estimates after the bell today by reporting .27/share on revenues of 23.5 million (analysts expected .17/share on revenues of 20 million).  Strong earnings were the direct result of a doubling of sales of its chewable fiber tablets and an 86% increase in sales of Breathe Right strips internationally.  The stock is well extended from a proper base, but bounced off support yesterday and today.  After hours the stock is soaring more than 13%.
• [48/50] Peets Coffee (PEET):  The high end coffee retailer reported another strong quarter with earnings rising 38% and revenues rising 24% from the year ago period.  They beat estimates by .02 a share, but the stock is down a few percent after hours.  The stock is hovering around key support of the 50 day moving average.
• [47/50] Symmetry Medical (SMA):  The provider of implants, related instruments and cases to orthopedic device manufacturers posted solid results after the bell by reporting an earnings increase of 55% on revenues that were up 32% from the year ago quarter.  That beat estimates by a penny.  The company also uppped guidance for the full year ’05.  No change to report after hours.
• [47/50] Barrett Business Services (BBSI):  A thinly traded stock off the radar of most investors, but nothing thin about earnings growth over the past couple years.  Earnings increased 253% in ’03 over ’02 (a year the company lost money) and increased earnings 243% the following year.  Growth in ’05 has slowed from those lofty levels, but the company reported another solid quarter after the bell by posting earnings growth of 55% and revenue growth of 25% from the year ago period.  That beat estimates by .03/share and the stock is up after hours by more than 7%.  The stock broke out on July 11th and sits just outside of an acceptable buy range.  Keep an eye on this one!

Good morning, I’m going to run through the earnings quickly this morning (meaning no charts this time). 

Starting at the top [with the rank in brackets]

[54/60] Gildan Activewear (GIL): beats by a penny, but misses on revs and issues downside guidance for Q4.  It issued in line guidance for the full year ’05 though.  The stock is well extended past a proper buy point and 14% above the 50 day moving average.

[51/60] LTC Properties (LTC): The REIT for nursing centers and assisted living did not have a strong quarter as earnings rose only 5% and revenues 2% from the previous quarter.  Earnings per share came in at .27/share vs. .42/share that the 2 analysts that follow the company expected.

[50/60] Westlake Chemical (WLK): The company missed analyst estimates by .06/share by posting earnings of .74/share.  The stock is currently forming a decent looking base and is looking to break out from a handle formation, but that base may be in jeopardy with today’s earnings report.

[50/60] Swift Energy (SFY): Another outstanding quarter ast the company beats by .07 and is up 4% in premarket trading.  The stock is well extended after breaking out at the beginning of May.  It’s up over 30% since then.

[49/50] Netease.com (NTES): EARNINGS BLOWOUT! The China online gaming company absolutely smashed estimates this morning by .17/share, good for a 131% increase over the year ago period.  The company also posted revenue growth that was double what analysts had expected, good for a 90% increase from the ’04 quarter.  The stock is soaring in premarket trading, up nearly 25%.

[49/50] Noble Energy (NBL): Same story for this oil company.  Handily beating estimates by .06/share as profits surge higher.

[48/50] Mine Safety Appliances (MSA) – misses by .07 and getting hit hard premarket

[47/50] Dominoes Pizza (DPZ) – Beats by .03/share, good for a 47% increase over the year ago period as same store sales increased.  Revenues came in a bit light with a 7% increase over the year ago period, but did beat the analyst estimate as well.

Best O The Rest..

Ansys (ANSS), Novamed (NOVA) and Fundtech (FNDT).

Note:  Ansys, Novamed and Fundtech are all looking to blast out of bases this morning.  Maybe earnings will provide just the boost they need!

Not too many notable earnings after the bell today, but of course there are a few high quality companies to highlight starting off with CB Richard Ellis Group(CBG) which is the highest ranking company to report after the bell today.  Continuing the streak of high ranking companies reporting outstanding results, CB Richard Ellis, the provider of commercial real estate services blew out earnings and beat estimates by .28/share and also raised guidance for the full year (no surprise there).  The stock is obviously responding positively after hours and is up nearly 7%.  This is a stock I bought for the SelfInvestors.com Model portfolio at the end of May and made the decision to sell (as I almost always do) before earnings.  Had I not been holding a 22% gain, I probably would have held this one through earnings considering it doesn’t exhibit the volatile swings around earnings time that a technology company might.  Another holding in the portfolio, St. Joe (JOE) was held through earnings because I had neither a large gain or sizable loss.  So it really does depend on a variety of factors.  However, more often than not I think selling before earnings is the best way to go in order to minimize risk and preserve capital.  I certainly don’t regret locking in a nice gain on this position ahead of earnings one bit, especially considering the bounce near support after the downgrade on valuation was rather weak.  I can always repurchase if the time is right and this is certainly one company to keep on the radar!

With a rank of 51 out of 60, General Cable (BGC) is another highly rated company reporting after the bell today.  Exluding one time costs as a result of the closing of manufacturing facilities, the company beat estimates by .02/share as earnings more than doubled from the year ago period.  They beat on revenues as well, but revenue growth continues to come in a bit on the light side with an increase of 9% from the year ago period.  The stock is well extended past a proper buy point.

HCC Insurance (HCC) is one of the highest ranked insurance companies in the database and they posted solid results after the bell and beat by .04/share.  They also upped guidance for ’05.  Technically, the stock bounced impressively off support of the 50 day moving average and remains too extended from a proper buy point.

Best ‘O The Rest..

• Technical Olympic USA (TOA): The Florida based homebuilder posted profit growth of 90% over the year ago period, smashing estimates by .19/share. They also raised guidance for the full year ’05.  Technically, the stock looks outstanding and cleared all time highs on July 13th with near record volume.  It’s been consolidating in a fairly tight range since, but may will probably bust out tomorrow. 
• Cal Dive International (CDIS): Another oil company beats estimates by a bundle.. enough said.  Cal Dive is one of the best in the business.
• Blackboard (BBBB): The developer of software for online education became profitable for the first time in ’03 and has grown fast and furious since, albeit a bit inconsistently from quarter to quarter.  The company beat by .03/share after the bell which is good for a 200% increase over the year ago period.  Revenues increased by 24% over the same period.  Institutions are showing a big appetite for the stock in the last few months as indicated by heavy volume buying.  The stock remains far extended from the first buy point at 19.35, but recent consolidation could be called a high handle, offering another buy point on a breakout.  I personally would prefer a drop to support of the 50 day moving average in this case as an opportunity to initiate a position.  The stock is up 4% in after hours trading.

Several high quality companies are reporting this morning led by United Therapeutics (UTHR) with a rank of 52 out of 60.   The developer of therapies for the treatment of cardiovascular, oncological and infectious diseases posted a profit for the first time in the June ’04 quartrer and growth has accelertated ever since.  Quarter over quarter earnings growth in the last 4 quarters has been 264%, 550%, 287% and 444%.  This morning, the company isn’t hitting those lofty numbers again, but has smashed estimates nonetheless by .16/share by posting 172% quarter over quarter growth.  The stock is soaring in premarket trading, up nearly 16%.  United Therapeutics has carved out a very short base and volume levels don’t indicate real healthy action up to this point.  Look for the stock to return to the area around 57 – 58 as a possible opportunity to initiate a position.

Rank 51/60

• A.M. Castle & Co (CAS):  The plastic and specialty metals distributor is looking to bolt out of a base this morning on strong earnings.  This is a company that has bounced back in a big way in the last year after losing money in the previous 3. 
• Schawk Inc (SGK): The provider of digital imaging prepress services to the consumer products packaging market beats by a penny.  The stock is in the process of carving out a new base.
• A.D.A.M Inc (ADAM): The publisher of interactive healthcare educational products is a very small company with no analyst estimates, but has posted another strong quarter with an increase in revenue of 29% and increase of 79% in earnings from the year ago period.  The stock is currently working on carving out the right side of a base.

Other notables reporting this morning in order of rank….

Amedisys (AMED) – up 9% in premarket, Coach (COH), Laserscope (LSCP) – up 8% in premarket, Remington Oil (REM), Oskosh (OSK), Eagle Materials (EXP), Accredited Home Lenders (LEND), Vital Images (VTAL) – up 18% in premarket trading, Coventry Health (CVH), TXU Corp (TXU), Petroquest Energy (PQUE), Genesee (GWR) and American Capital Strategies (ACAS)

I wanted to highlight a few outstanding companies that reported after the bell today – Jupiter Media (JUPM), Cutera (CUTR) and SRA International (SRX).

Jupiter Media (JUPM) is a leader in internet research and digital images and has been growing and fast and furious in the last 2 years.  The company reported earnings today that were in line with estimates and revenues that just beat estimates.. Apparently that wasn’t quite good enough as the stock is trading down more than 5% after hours.

The stock broke out above 20 in mid July with good volume but still faces resistance at all time highs in the 24 – 25 range.  A retreat to the breakout point around 20 would offer a buy opportunity if you missed the initial breakout.

Cutera (CUTR), a provider of of products used in non invasive aesthetic procedures, is a company on the mend after struggling for most of ’04.  After reporting quarter over quarter earnings growth of 300% last quarter, the company topped that today with growth of 450%, smashing estimates by .09 cents a share and raising guidance for ’05.  No surprise that the company is up nearly 10% after hours.

Too bad the stock couldn’t make this kind of move AFTER earnings! I was hoping it would behave itself long enough to provide a decent entry point after earnings, but it didn’t happen.  Along with USNA, this chart has to be up there at the top of the "best looking" charts list. 

SRA International (SRX), a provider of information technology services and solutions in national security, civil government and health care really began to hit its stride in ’02 and has posted very consistent growth of around 35% on average each quarter since.  Another solid quarter was posted after the bell as the company beat by a penny, however issued guidance for next quarter a penny below.  Revenue estimates are in line.  The stock is up 2% after hours.

Technically, the stock broke out of a somewhat sloppy base back in April and has had a decent run by gaining 17%.  However, the action is a bit shaky with volatile swings and poor up versus down volume.  Currently it sits just above support of the 50 day moving average.

Other Notables Posting After the Bell…

Herbal Life (HLF), Oil States Intl (OIS), LECG Corp (XPRT), Maritrans (TUG) and General Growth Properties (GGP).