NEW YORK (TheStreet) -- Revolution Lighting Technologies
(RVLT) finished up 3.28% to $3.15 after signing master distribution agreements to expand its international foot print and drive penetration in South America and Europe.
The company designs, manufactures, markets and sells commercial grade, LED replacement light bulbs, LED signage and other lighting products.
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TheStreet Ratings team rates REVOLUTION LIGHTING TECHNLGS as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:"We rate REVOLUTION LIGHTING TECHNLGS (RVLT) a SELL. This is driven by a few notable weaknesses, 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. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and poor profit margins." 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 when compared to that of the S&P 500 and the Electrical Equipment industry. The net income has significantly decreased by 146.8% when compared to the same quarter one year ago, falling from -$1.34 million to -$3.30 million.
- The gross profit margin for REVOLUTION LIGHTING TECHNLGS is currently lower than what is desirable, coming in at 32.39%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, RVLT's net profit margin of -46.47% significantly underperformed when compared to the industry average.
- REVOLUTION LIGHTING TECHNLGS's earnings per share declined by 25.0% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, REVOLUTION LIGHTING TECHNLGS continued to lose money by earning -$0.27 versus -$0.80 in the prior year.
- Compared to its closing price of one year ago, RVLT's share price has jumped by 67.02%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in RVLT do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- RVLT's very impressive revenue growth greatly exceeded the industry average of 4.7%. Since the same quarter one year prior, revenues leaped by 590.0%. 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.
- You can view the full analysis from the report here: RVLT Ratings Report
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