Rating Change #3
Access Midstream Partners LP (ACMP) has been upgraded by TheStreet Ratings from sell to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, increase in net income, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 2.7%. Since the same quarter one year prior, revenues rose by 12.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The gross profit margin for ACCESS MIDSTREAM PARTNERS LP is currently very high, coming in at 70.10%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 34.60% significantly outperformed against the industry average.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 25.6% when compared to the same quarter one year prior, rising from $41.08 million to $51.61 million.
- Net operating cash flow has remained constant at $69.18 million with no significant change when compared to the same quarter last year. In addition, ACCESS MIDSTREAM PARTNERS LP has modestly surpassed the industry average cash flow growth rate of -5.50%.
- ACCESS MIDSTREAM PARTNERS LP has improved earnings per share by 17.2% 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, ACCESS MIDSTREAM PARTNERS LP reported lower earnings of $1.36 versus $1.40 in the prior year. This year, the market expects an improvement in earnings ($1.38 versus $1.36).