Which of These Top 5 Telecom Stocks have the Strongest Earnings Trends?

  Google+ | + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

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 5 telecom stocks rank via earnings trends:

CenturyLink, Inc. (NYSE:CTL): Current Price $33.02

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 2,600 4,974 7,042 15,350 18,380
Diluted EPS ($) 3.52 3.23 3.13 1.07 1.25

A raft of acquisitions helped CenturyLink grow its revenue over seven times between 2008 and 2012, though EPS is decreasing during 2011 and 2012.

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 ($) in millions 4,653 4,610 4,612 4,571 4,583
Diluted EPS ($) -0.03 0.32 0.12 0.43 0.37

Revenue is mostly flat these past few quarters, and EPS fell off in December 2012. We’ll pass over CenturyLink for now…

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business