Update (9:35 a.m.): Updated with Thursday market open information.
The stock was rising 3.91% to $19.94 shortly after the market opened on Thursday.
Separately, TheStreet Ratings team rates INFOBLOX INC as a "sell" with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate INFOBLOX INC (BLOX) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Software industry. The net income has decreased by 6.7% when compared to the same quarter one year ago, dropping from -$2.39 million to -$2.55 million.
- In its most recent trading session, BLOX 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. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Software industry and the overall market, INFOBLOX INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for INFOBLOX INC is currently very high, coming in at 78.82%. Regardless of BLOX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BLOX's net profit margin of -4.01% significantly underperformed when compared to the industry average.
- INFOBLOX 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, INFOBLOX INC continued to lose money by earning -$0.10 versus -$0.14 in the prior year. This year, the market expects an improvement in earnings ($0.33 versus -$0.10).
- You can view the full analysis from the report here: BLOX Ratings Report