NEW YORK (TheStreet) -- Acme United (ACU - Get Report) realized a 9% year over year quarterly increase in net sales, posting $19.2 million in the first quarter this year compared to $17.7 million in first quarter 2013.
Acme United stock is up 0.9% to $17.20 in early trading on Thursday.
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Net income for the quarter was $368,000, matching analysts EPS estimates of 11 cents per share.
TheStreet Ratings team rates ACME UNITED CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ACME UNITED CORP (ACU) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- ACU's revenue growth has slightly outpaced the industry average of 7.3%. Since the same quarter one year prior, revenues slightly increased by 9.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.65, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with this, the company maintains a quick ratio of 2.76, which clearly demonstrates the ability to cover short-term cash needs.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 34.88% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ACU should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- ACME UNITED CORP has improved earnings per share by 7.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ACME UNITED CORP increased its bottom line by earning $1.22 versus $1.14 in the prior year. This year, the market expects an improvement in earnings ($1.35 versus $1.22).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Commercial Services & Supplies industry average, but is less than that of the S&P 500. The net income increased by 21.6% when compared to the same quarter one year prior, going from $0.43 million to $0.52 million.
- You can view the full analysis from the report here: ACU Ratings Report