NEW YORK (TheStreet) -- Shares of Abraxas Petroleum Corp. (AXAS - Get Report) are higher by 3.28% to $5.67 on Thursday after the company reported net income for the 2014 first quarter increased to $4.7 million, or 5 cents per share, compared to $0.6 million, or 1 cent per share from the year ago quarter.
Adjusted net income was $6.3 million, or 7 cents per share, versus $2.3 million, or 2 cents per share, from the 2013 first quarter.
The independent energy company said revenue grew to $25.9 million for the 2014 first quarter, from $21.2 million from the same period last year.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
TheStreet Ratings team rates ABRAXAS PETROLEUM CORP/NV as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ABRAXAS PETROLEUM CORP/NV (AXAS) a BUY. This is driven by some important positives, 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 robust revenue growth, notable return on equity, expanding profit margins, solid stock price performance and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 0.2%. Since the same quarter one year prior, revenues rose by 18.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 323.07% and other important driving factors, this stock has surged by 146.72% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AXAS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ABRAXAS PETROLEUM CORP/NV's return on equity significantly exceeds that of both the industry average and the S&P 500.
- 42.17% is the gross profit margin for ABRAXAS PETROLEUM CORP/NV which we consider to be strong. It has increased significantly from the same period last year. Along with this, the net profit margin of 119.73% significantly outperformed against the industry average.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 327.5% when compared to the same quarter one year prior, rising from -$11.87 million to $27.00 million.
- You can view the full analysis from the report here: AXAS Ratings Report