Newtek Business Services Inc. Stock Downgraded (NEWT)
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- The revenue growth came in higher than the industry average of 13.0%. Since the same quarter one year prior, revenues rose by 11.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- Compared to its closing price of one year ago, NEWT's share price has jumped by 59.32%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- NEWTEK BUSINESS SERVICES INC reported flat earnings per share in the most recent quarter. 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, NEWTEK BUSINESS SERVICES INC increased its bottom line by earning $0.15 versus $0.09 in the prior year. This year, the market expects an improvement in earnings ($0.17 versus $0.15).
- The gross profit margin for NEWTEK BUSINESS SERVICES INC is currently extremely low, coming in at 13.70%. Regardless of NEWT's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, NEWT's net profit margin of 4.25% is significantly lower than the industry average.
- The debt-to-equity ratio of 1.10 is relatively high when compared with the industry average, suggesting a need for better debt level management.
-- Written by a member of TheStreet Ratings Staff
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