Which of the Top 3 Radio Stocks Has the Strongest Earnings Trends?

February 26, 2013

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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’).

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Here’s your Cheat Sheet to how the top 3 radio stocks rank via earnings trends:

SIRIUS XM Radio Inc. (NASDAQ:SIRI): Current Price $3.10

Fiscal Year	2008	2009	2010	2011	2012
Revenue ($) in millions	1,664	2,473	2,817	3,015	3,402
Diluted EPS ($)	-2.45	-0.15	0.01	0.07	0.51

These numbers point to an impressive uptrend in revenue and profitability at Sirius.

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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 ($) in millions	783.74	804.72	837.54	867.36	892.42
Diluted EPS ($)	0.01	0.02	0.48	0.01	0.00

There’s excellent growth in the quarterly results, too, though we’re disappointed that EPS fell in the latest quarter.

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