Which Alcoholic Beverage Stocks have the Strongest Earnings Trends?

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Earnings trends are extremely important when evaluating stocks. At Wall St. Cheat Sheet, we view increasing earnings quarter-over-quarter as a simple way to gauge whether costs and the business model are stable. Then we like to analyze whether the company is outperforming peers in the sector. This is what we call the “E-Squared” investment analysis (‘E = Earnings Are Increasing Quarter-Over-Quarter’ + ‘E = Excellent Relative Performance Versus Peers and Sector’).

Stocks with improving earnings metrics are worthy of your extra attention. Click here to discover our CHEAT SHEET stock picks now!

Here’s your Cheat Sheet to how the top 4 alcoholic beverage stocks rank via earnings trends:

BEAM Inc (NYSE:BEAM): Current Price $60.95

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 7,609 1,980 2,095 2,311 2,466
Diluted EPS ($) 2.02 1.60 3.16 5.78 2.38

The financial crisis took a severe toll on Beam’s numbers in 2009, but things have certainly turned around since then. Though revenue in 2011 is just about a quarter that of 2007, EPS is up 18% in that year…

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 637.50 533.80 595.50 627.50 709.10
Diluted EPS ($) 0.50 0.49 0.62 0.47 0.79

BEAM has shown rising sales for the last three quarters but EPS has only risen the past three. This stock passes our quarter-over-quarter earnings growth test, but keep an eye on consistency…

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