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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 5 telecom stocks rank via earnings trends
Sprint Nextel Corp. (NYSE:S): Current Price $5.78
|Revenue ($) in millions||35,640||32,260||32,560||33,680||35,340|
|Diluted EPS ($)||-0.98||-0.84||-1.16||-0.96||-1.44|
We find that sales are flat and there are no profits for the shareholders. Sprint has had negative EPS for the past five years.
Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:
|Quarter||Dec. 31, 2011||Mar. 31, 2012||Jun. 30, 2012||Sep. 30, 2012||Dec. 31, 2012|
|Revenue ($) in millions||8,722||8,734||8,843||8,763||9,005|
|Diluted EPS ($)||-0.43||-0.29||-0.46||-0.26||-0.44|
Unfortunately, the quarterly numbers are also awash in red, and we can drop Sprint right away from the list.
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