NEW YORK (TheStreet) -- Interactive Intelligence (ININ - Get Report) shares are down -13.04% to $54 in after-market trading on Monday following the release of the company's first quarter earnings report.
The company posted a 8% year over year quarterly revenue increase to $79.4 million, missing analysts consensus estimates of $79.7 million.
The software application provider posted a non-GAAP net loss of $0.4 million, -2 cents per diluted share, missing analysts estimates by 3 cents.
TheStreet Ratings team rates INTERACTIVE INTELLIGENCE GRP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTERACTIVE INTELLIGENCE GRP (ININ) 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, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 5.7%. Since the same quarter one year prior, revenues rose by 28.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- ININ has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.34, which illustrates the ability to avoid short-term cash problems.
- Powered by its strong earnings growth of 54.54% and other important driving factors, this stock has surged by 57.92% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
- The gross profit margin for INTERACTIVE INTELLIGENCE GRP is rather high; currently it is at 68.31%. Regardless of ININ's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ININ's net profit margin of 3.88% is significantly lower than the industry average.
- 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. In comparison to the other companies in the Software industry and the overall market, INTERACTIVE INTELLIGENCE GRP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full analysis from the report here: ININ Ratings Report