TSC Ratings' Updates: City National

CSL has improved earnings per share by 5.7% in the most recent quarter compared with the same quarter a year ago. The company has demonstrated a pattern of positive earnings-per-share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, CSL has increased its bottom line by earning $3.39 vs. $2.87 in the prior year. For the next year, the market is expecting a contraction of 15.2% in earnings ($2.88 vs. $3.39).

The gross profit margin for CSL is rather low; currently it is at 21.90%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 6.30% trails that of the industry average.

Net operating cash flow has decreased to $79.00 million or 37.46% when compared with the same quarter last year. In addition, when comparing it with the cash generation rate to the industry average, the firm's growth is significantly lower.

CSL had been rated a buy since Sept. 25, 2008.

Central European Media Enterprises(CETV Quote) has been downgraded from buy to hold. Central European Media Enterprises, together with its subsidiaries, invests in, develops, and operates commercial television channels in the central and eastern Europe. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings-per-share growth and compelling growth in net income.

However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

The revenue growth greatly exceeded the industry average of 5.3%. Since the same quarter one year prior, revenue rose by 41.2%. Growth in the company's revenue appears to have helped boost the earnings per share.