VanceInfo Technologies Inc. Stock Downgraded (VIT)
- The revenue growth came in higher than the industry average of 1.9%. Since the same quarter one year prior, revenues rose by 25.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- VIT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 5.23, which clearly demonstrates the ability to cover short-term cash needs.
- VANCEINFO TECHNOLOGIES -ADR has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, VANCEINFO TECHNOLOGIES -ADR increased its bottom line by earning $0.69 versus $0.53 in the prior year. This year, the market expects an improvement in earnings ($0.85 versus $0.69).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Software industry. The net income has significantly decreased by 58.6% when compared to the same quarter one year ago, falling from $7.71 million to $3.19 million.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Software industry and the overall market, VANCEINFO TECHNOLOGIES -ADR's return on equity is significantly below that of the industry average and is below that of the S&P 500.
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