Datawatch Corporation Stock Downgraded (DWCH)
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- DWCH's revenue growth has slightly outpaced the industry average of 0.1%. Since the same quarter one year prior, revenues slightly increased by 8.8%. 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.
- The gross profit margin for DATAWATCH CORP is currently very high, coming in at 84.60%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -3.25% is in-line with the industry average.
- DATAWATCH CORP 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, DATAWATCH CORP increased its bottom line by earning $0.15 versus $0.01 in the prior year. This year, the market expects an improvement in earnings ($0.31 versus $0.15).
- 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. Compared to other companies in the Software industry and the overall market on the basis of return on equity, DATAWATCH CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
- 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 136.8% when compared to the same quarter one year ago, falling from $0.60 million to -$0.22 million.
-- Written by a member of TheStreet Ratings Staff
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