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Sunday, May 29, 2011

Earnings Growth Charts

I have one stock from the earnings list reporting this week, but also discovered 6 that reported earlier this month I missed. I picked the 5 graphs most of interest. In the top panel the red line is quarterly EPS growth rate, black is quarterly revenue growth rate. In the middle, the red line is quarterly EPS, black is price, blu preice relative to SPX, and green quarterly revenue. If the stock is reporting the end of a fiscal year, the large red bars are annual EPS. At the bottom the black bars are volume.

AIRM was one of the stocks to report triple digit earnings growth this quarter, but that is coming off a big drop in EPS a year ago, so it's not that impressive.  Earnings are in a slow long term up trend, but price has recently taken off, so the market seems to be anticipating continued growth. Revenue has been pretty consistent, so the market might be right. 

CACC has for a couple years now been one of those stocks that shows up every week on the IBD 100 (now the IBD 50) that, when you first see it, you wonder how the hell it got there. It is a slow mover, gets vapors for volume, and is a financial stock on top of all that. One look at this graph and it's pretty obvious: relentless earnings and revenue growth, and while price doesn't move that fast, it has been consistently moving up. This is another reason why I quit arguing with IBD.

CRVL was the stock reporting this week, and also the only one reporting the end of a fiscal year. Annual EPS dropped a bit this year, a cause for concern but not panic. Quarterly EPS, though, went right down the drain this quarter, which is a cause for panic. This did take a hit on the report, but no signs of panic yet.

This is GPIC, which has been on the list for quite some time but I apparently haven't been paying much attention to it. It does look like there is some problems in the graph, but I didn't see anything obvious. Earnings and revenue are both going nowhere, as is price. The update is coming in another month, so I will have this one straightened out before then, and if nothing changes, it looks like a good candidate for removal.

MFW was a recent addition to the list, and a good example of why I am going to have to graph candidates before putting them on. I think is was the high burst of growth last quarter that got my attention, and according to Finviz, it's 5 year EPS growth rate is 39%. It looks to me that the bulk of that growth came a couple of years agoa, because it doesn't look like it has done much since. On the plus side, price is so far off it's high that it won't take much growth here to get a pretty good gain.

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