TSC Ratings' Updates: Bristol-Myers

Jefferies experienced a steep decline in earnings per share in the most recent quarter compared with the same quarter last year, continuing a two-year pattern of declining EPS that we anticipate should continue in the coming year. During the past fiscal year, the company reported lower earnings of 96 cents vs. $1.42 in the prior year. For the next year, the market is expecting a contraction in earnings to -$2.95.

We've upgraded Kinross Gold(KGC Quote), which engages in mining and processing gold and silver ores, from hold to buy, driven by its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Revenue leaped by 82.6% since the same quarter last year, outperforming the industry's 69.2% average growth and improving EPS. Kinross' debt-to-equity ratio is very low at 0.17 and is currently below that of the industry average, implying very successful management of debt levels. Net operating cash flow has significantly increased by 146.1% to $206 million, vastly surpassing the industry average cash flow growth rate of -43.88%. Kinross' gross profit margin of 53.5% is rather high, having increased significantly from the same period last year, but its profit margin of 12.8% significantly trails the industry average.

EPS are up 42.9% in the most recent quarter compared with the same quarter a year ago. During the past fiscal year, Kinross increased its bottom line by earning 59 cents vs. 47 cents in the prior year.