Big Lots, Inc. (BIG) recently surprised on estimates for the third consecutive quarter even as it saw a slight decline in sales.

Big Lots is a closeout retailer which sells a broad range of products including seasonal items, furniture, housewares, toys, electronics, home decor and tools. It has been benefiting from customers seeking value in their purchases during the recession.

On Aug 25, the company reported that earnings per share were 35 cents which surprised on the Zacks Consensus Estimate by 12.90%, or 4 cents. It also surpassed the 32 cents reported in the second quarter of 2008.

Sales fell by 1.7% to $1.086 million from $1.105 million in the year ago quarter. Comparable store sales were also lower, decreasing 2.4% for the quarter.

Fiscal 2009 Guidance Raised

Given that the company continues to surprise on estimates, it also continues to raise its fiscal 2009 guidance range. Big

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El Paso Corporation (EP) has surprised on the Zacks Consensus Estimate 3 out of the last 4 quarters by an average of 24.49% even as the prices of natural gas and oil have plunged. The company is cheap, trading at just 9.3x forward earnings.

Company Description

El Paso Corporation is a large independent natural gas producer and operates one of North America's largest interstate natural gas pipeline systems.

El Paso Surprised by 19.05% on the Second Quarter

On Aug 6, El Paso reported its second quarter results and beat the Zacks Consensus Estimate by 4 cents. Earnings per share were 25 cents which was lower than the 39 cents from a year ago. Lower natural gas and oil prices impacted the results.

The company saw production rise in the Central and Western divisions by 6% and 5%, respectively, over the year ago period.

With the drop in crude

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The markets are moving. While the nation’s biggest companies are making the headlines, some of the smallest firms are creating the most profit potential.

After a banner week for the equities market last week, we are off to another positive start.

As the equities market continues to react to a slew of better-than-expected earnings reports, all eyes have turned to Ben Bernanke and his official commentary to Congress later this week. Unless the Fed chief says something entirely unexpected, bordering on economically outrageous, do not expect the markets to make a huge move in either direction.

This is still an earnings game. As long as investors work to adjust their expectations higher, the markets will move accordingly.

For the smallest of publicly traded companies – the firms that were on the ropes as the credit crunch tightened its grips – news of strong earnings could not have been more welcome.

While the big boys

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TC Pipelines LP's (...

Highlighted stocks include Forest Oil Corporation (...

EXCO Resources, Inc. (...

Encore Acquisition saw revenues soar 96% in the second quarter on the back of record crude prices. But even as crude prices have retreated, the company isn't a one quarter wonder. It has surprised on estimates 4 consecutive quarters by an average of 16.44%. Encore's forward P/E is 10.07.

Company Description

Encore Acquisition Company (EAC) is an exploration and production company which drills onshore in North America.

Based in Fort Worth, Texas, Encore's properties are located in the Rockies, which includes the Dakotas, the Mid-Continent, which includes Oklahoma, and the Permian Basin which includes New Mexico and Texas.

In early May, Encore announced it was putting itself up for sale but in August, according to the Associated Press, the company said it was no longer looking to merge or be bought but instead would work to pay down its existing debt.

Encore Reports Record Revenues for the

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Whiting Petroleum Corporation (WLL), the independent oil and gas company that explores primarily in the Permian Basin, Rocky Mountains, Mid-Continent, Gulf Coast and Michigan, continues to be a Zacks #1 Rank (Strong Buy) stock even as crude and natural gas prices have pulled back from record highs.

On July 30, WLL reported second quarter earnings that missed on analysts' estimates by 5.47%, or 11 cents per share. However, it was a record quarter for the company, as net income spiked to $80.4 million, or $1.90 per share, from $26.5 million, or 72 cents per share, in the second quarter of 2007.

Production continues to increase year over year with first half production in 2008 totaling 7.76 MMBOE, or 42,660 BOE per day, compared with 7.26 MMBOE, or 40,090 BOE per day, in the first half of 2007.

The company is bullish about production going forward. It has

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Cimarex Energy Company (XEC), an oil and gas exploration and production company, has surprised on estimates 4 consecutive quarters, yet the stock has retreated from recent highs as crude prices have fallen. XEC now trades at just 6.14x forward earnings.

Cimarex Surprised by 5.51% in the Second Quarter

On Aug 5, the company once again beat Wall Street estimates when it reported its second quarter earnings. Net income soared 191% to $229.3 million, or $2.68 per share, from $78.7 million, or 93 cents per share in the year ago period. Analysts expected $2.54 per share in the quarter.

Revenues jumped 81% to $588.7 million from $325.8 million a year ago.

Obviously, the revenue growth could be attributed to the surging crude and natural gas prices as crude rose during the quarter. Natural gas prices increased 45% to an average of $10.57 per thousand cubic feet (Mcf) and crude

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