KongZhong Corporation Stock Downgraded (KONG)
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- The revenue growth came in higher than the industry average of 8.1%. Since the same quarter one year prior, revenues rose by 20.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- KONG 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 4.45, which clearly demonstrates the ability to cover short-term cash needs.
- KONGZHONG CORP -ADR reported significant earnings per share improvement 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, KONGZHONG CORP -ADR swung to a loss, reporting -$0.19 versus $0.31 in the prior year. This year, the market expects an improvement in earnings ($0.65 versus -$0.19).
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Software industry and the overall market, KONGZHONG CORP -ADR's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $10.00 million or 32.95% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
-- Written by a member of TheStreet Ratings Staff
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