On Oct. 22, the company reported that global comparable sales growth of 7.1% year over year fueled strong results in the third quarter of fiscal 2008. Revenue increased 6.2% when compared with the prior year's quarter. Although this trailed the industry average of 23.2%, it appears to have led to EPS growth. EPS improved 26.5%, rising from 83 cents in the third quarter of fiscal 2007 to $1.05 in the most recent quarter. Although McDonald's reported that earnings have been somewhat volatile recently, we feel that it is poised for EPS growth in the coming year. Net income increased by 11.2% when compared to the same quarter a year ago. In addition, we consider the company's 37.7% gross profit margin to be strong, especially as it has managed to decrease from the same period last year and compares favorably to the industry average of 19%.

For the first quarter of fiscal 2009, the company reported that it achieved strong results, primarily due to strong consumer demand in worldwide markets. First-quarter revenue rose 13.8% year-over-year, but this revenue does not appear to have trickled down to the company's bottom line, as General Mills displayed a decline in EPS for the quarter. However, we feel that the company is poised for EPS growth in the coming year, despite reporting somewhat volatile earnings recently. Net sales grew 14% from $3.07 billion in the first quarter of fiscal 2008 to $3.5 billion in the most recent quarter. Net operating cash flow also increased significantly, rising 1,007.4% when compared to the same quarter last year. In addition, we consider the company's 37.3% gross profit margin to be strong.

Despite challenges from the economy and weather, the company reported positive earnings results for the third quarter of fiscal 2008. Its revenue growth of 12.3% year over year slightly outpaced the industry average. Net income growth also increased, rising 3.1% from $772.5 million in the third quarter of fiscal 2007 to $796.6 million in the most recent quarter. Although Southern Company has had somewhat volatile earnings recently and reported flat earnings for the third quarter, we feel that it is poised for earnings per share growth in the coming year. The company reported that it earned $1.01 per share, excluding the impact of synthetic fuel investments. Its current debt-to-equity ratio is somewhat high at 1.3, but this is still below the industry average, suggesting that its debt level is acceptable within the electric utilities industry.

For the third quarter of fiscal 2008, the company reported that its revenue grew slightly by 7.3% year over year. While this growth was less than the industry average of 17.2%, it does appear to have helped boost EPS, which improved significantly from 18 cents a year ago to $1.09 in the most recent quarter. This represents the continuation of a trend of positive EPS growth over the past year, a trend which we feel should continue. Net income also increased significantly, surging 476.1% when compared to the same quarter a year ago. Amgen reported a slight improvement in its return on equity, which rose from 18.7% to 20.5%. This can be construed as a modest strength for the organization.

For the first quarter of fiscal 2009, the company reported earnings growth of 8.7% year over year, as earnings rose to $3.4 billion, or $1 per share. Earnings per share increased 11.9% when compared to the same quarter last year, continuing a trend of positive EPS growth that we feel should continue in the future. P&G's revenue growth of 9% slightly outpaced the industry average of 8.8%. This growth was supported by favorable foreign exchange rates and a 5.0% increase in organic sales. Return on equity improved slightly from 15.6% in the first quarter of fiscal 2008 to 18.8% in the most recent quarter and can therefore be considered a minor strength for P&G. Net operating cash flow remained constant at $3.3 billion.