Covance Inc. Stock Upgraded (CVD)
- COVANCE INC has improved earnings per share by 11.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, COVANCE INC increased its bottom line by earning $2.17 versus $1.05 in the prior year. This year, the market expects an improvement in earnings ($2.65 versus $2.17).
- Despite its growing revenue, the company underperformed as compared with the industry average of 13.9%. Since the same quarter one year prior, revenues slightly increased by 8.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- CVD's debt-to-equity ratio is very low at 0.27 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.03, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has significantly increased by 5640.73% to $45.43 million when compared to the same quarter last year. In addition, COVANCE INC has also vastly surpassed the industry average cash flow growth rate of 7.33%.
-- Written by a member of TheStreet RatingsStaff
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