Winn-Dixie Stores Inc. Stock Upgraded (WINN)
NEW YORK (TheStreet) -- Winn-Dixie Stores (Nasdaq:WINN) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall. Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Food & Staples Retailing industry average. The net income increased by 25.1% when compared to the same quarter one year prior, rising from -$24.01 million to -$17.99 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 4.4%. Since the same quarter one year prior, revenues slightly increased by 2.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- WINN-DIXIE STORES INC has improved earnings per share by 15.4% in the most recent quarter compared to 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, WINN-DIXIE STORES INC swung to a loss, reporting -$0.53 versus $0.67 in the prior year. This year, the market expects an improvement in earnings (-$0.17 versus -$0.53).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Food & Staples Retailing industry and the overall market, WINN-DIXIE STORES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for WINN-DIXIE STORES INC is currently lower than what is desirable, coming in at 29.10%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.80% trails that of the industry average.
-- Written by a member of TheStreet RatingsStaff
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV