QAD Inc. Stock Downgraded (QADA)
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- 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 45.4% when compared to the same quarter one year ago, falling from $3.68 million to $2.01 million.
- 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. When compared to other companies in the Software industry and the overall market, QAD INC's return on equity is below that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $5.61 million or 33.28% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, QAD INC has marginally lower results.
- In its most recent trading session, QADA has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
- QAD INC's earnings per share declined by 45.5% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, QAD INC reported lower earnings of $0.40 versus $0.65 in the prior year. This year, the market expects an improvement in earnings ($0.64 versus $0.40).
-- Written by a member of TheStreet Ratings Staff
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