TSC Ratings' Updates: Limited Brands
XCO, with its very weak revenue results, has greatly underperformed against the industry average of 30.2%. Since the same quarter one year prior, revenues plummeted by 160.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
Return on equity has greatly decreased when compared with its return on equity from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared with other companies in the oil, gas & consumable fuels industry and the overall market, XCO's return on equity significantly trails that of both the industry average and the S&P 500.
The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared with that of the S&P 500 and the oil, gas & consumable fuels industry. The net income has significantly decreased by 417.2% when compared with the same quarter one year ago, falling from $82.89 million to -$262.91 million.
XCO had been rated a buy since Aug. 12, 2008.KBR (KBR) has been downgraded from hold to sell. KBR operates as an engineering, construction, and services company supporting energy, petrochemicals, government services and civil infrastructure sectors worldwide. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, generally disappointing historical performance in the stock itself and poor profit margins. The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared with that of the S&P 500 and the construction & engineering industry. The net income has significantly decreased by 65.7% when compared with the same quarter one year ago, falling from $140.00 million to $48.00 million.
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