TSC Ratings' Updates: Texas Capital Bancshares

The company's net earnings increased 9.8% to $98.94 million or 71 cents per share compared with where $90.14 million or 70 cents per share in first quarter fiscal year 2007. Total debt decreased 6.3%, whereas stockholders' equity grew 13.0%. Subsequently, the debt-to-equity ratio improved to 0.54 from 0.66. In addition, the interest coverage ratio increased to 4.94 from 3.75, following a decline in interest expenses. The return on equity ratio rose 258 basis points, while return on assets expanded 151 basis points.

CGG Veritas manufacturing subsidiary Sercel acquired Metrolog, a provider of high pressure, high temperature gauges and other downhole instruments to the oil and gas industry. Looking forward, CGV anticipates that seismic equipment deliveries will continue to increase throughout 2008, fueled by Sercel's record backlog. CGV further expects library sales to increase particularly in fourth quarter fiscal year 2008, fueled by the timing of licensing rounds.

The company reported robust revenue growth that percolated to the bottom-line. However, declining operating margins, a weak cash position and Metrolog integration-related challenges may hurt its profitability in the upcoming quarters.

CGV had been rated a buy since December 12, 2008.

CNH Global NV(CNH Quote) has been downgraded from buy to hold. CNH Global N.V. engages in the manufacture, marketing and distribution of a range of agricultural and construction equipment worldwide. It operates in three segments: agricultural equipment, construction equipment and financial services. 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 also find weaknesses including generally poor debt management, poor profit margins and weak operating cash flow.