NEW YORK (TheStreet) -- Shares of Blount International Inc. (BLT - Get Report) are higher by 3.82% to $11.42 on Friday after the company reported net income for the 2014 first quarter was $10.6 million, or 21 cents per diluted share, compared to $9.3 million, or 19 cents per diluted share for the year ago quarter.
Revenue for the global industrial company was $232 million, consistent with the 2013 first quarter.
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TheStreet Ratings team rates BLOUNT INTL INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate BLOUNT INTL INC (BLT) 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 good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and a generally disappointing performance in the stock itself."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Net operating cash flow has significantly increased by 245.44% to $63.86 million when compared to the same quarter last year. In addition, BLOUNT INTL INC has also vastly surpassed the industry average cash flow growth rate of 14.76%.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 4.8%. Since the same quarter one year prior, revenues slightly dropped by 0.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The debt-to-equity ratio is very high at 2.89 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, BLT's quick ratio is somewhat strong at 1.27, demonstrating the ability to handle short-term liquidity needs.
- 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 Machinery industry. The net income has significantly decreased by 33.8% when compared to the same quarter one year ago, falling from $11.62 million to $7.70 million.
- You can view the full analysis from the report here: BLT Ratings Report