NEW YORK (TheStreet) -- Consumer Portfolio Services (CPSS - Get Report) shares continue to rally, up 9.4% to $7.92 in trading on Thursday.
The bump follows the specialty finance company's better than expected earnings first quarter 2014 earnings numbers.
The company posted net income of 21 cents per share for the quarter ending in March, beating analysts estimates of 19 cents a share.
Consumer Portfolio Services stock also benefited from shares being upgraded to "overweight" from "equal weight" by Stephens Inc on Monday.
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Separately, TheStreet Ratings team rates CONSUMER PORTFOLIO SVCS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
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"We rate CONSUMER PORTFOLIO SVCS INC (CPSS) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 4.5%. Since the same quarter one year prior, revenues rose by 31.6%. 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 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 Consumer Finance industry. The net income has significantly decreased by 89.9% when compared to the same quarter one year ago, falling from $64.83 million to $6.52 million.
- The debt-to-equity ratio is very high at 13.50 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
- You can view the full analysis from the report here: CPSS Ratings Report