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 communication tech stocks rank via earnings trends:
ADTRAN Inc. (NASDAQ:ADTN): Current Price $20.98
|Revenue ($) in millions||500.68||484.18||605.67||717.23||620.61|
|Diluted EPS ($)||1.22||1.17||1.78||2.12||0.74|
This company was doing well up to 2011 with nice growth seen across both the top line and earnings. However, 2012 proved to be a challenge.
Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:
|Quarter||Dec. 31, 2011||Mar. 31, 2012||Jun. 30, 2012||Sep. 30, 2012||Dec. 31, 2012|
|Revenue ($) in millions||175.29||134.74||184.00||162.12||139.76|
|Diluted EPS ($)||0.48||0.20||0.33||0.15||0.06|
Things have been rocky here — particularly over the last three quarters. We’ll have to look elsewhere…