Which of These 5 Utility Stocks have the Strongest Earnings Trends?

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Southern (NYSE:SO): Current Price $44.83

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 17,130 15,740 17,460 17,660 16,540
Diluted EPS ($) 2.25 2.06 2.36 2.55  2.68

We appreciate that EPS has grown year-over-year after 2009 at Southern.

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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 ($) in millions 3,696 3,604 4,181 5,049 3,703
Diluted EPS ($) 0.30 0.42 0.71 1.11  0.44

Unfortunately, things certainly went awry for Southern in the December 2012 quarter, and the sharp fall in EPS means it goes out of the reckoning…

Conclusion

Only AES and Sempra make it to the finals in this ”E-Squared” investment analysis of utilities. However, it is easy to pick Sempra Energy (NYSE:SRE) because of its better overall profitability record, one which does not reflect any period of negative EPS.

“E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our successful CHEAT SHEET investing framework. Don’t waste another minute – click here to discover our CHEAT SHEET stock picks now!

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