NEW YORK (TheStreet) -- Shares of Gulf Resources Inc. (GURE - Get Report) are higher by 11.24% to $1.98 in after-hours trading on Friday following the company's 2014 first quarter earnings report which showed net income was $4.3 million, or 11 cents per basic and diluted share, compared to $1.9 million, or 5 cents per basic and diluted share from the year ago quarter.
The bromine and crude salt manufacturer reported net revenue increased 14% to $25.6 million, from $22.5 million for the 2013 first quarter.
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TheStreet Ratings team rates GULF RESOURCES INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate GULF RESOURCES INC (GURE) 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 solid stock price performance. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 12.0%. Since the same quarter one year prior, revenues rose by 36.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- GURE's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 13.51, which clearly demonstrates the ability to cover short-term cash needs.
- GULF RESOURCES INC reported significant earnings per share improvement 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 year. During the past fiscal year, GULF RESOURCES INC increased its bottom line by earning $0.54 versus $0.43 in the prior year.
- 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 Chemicals industry and the overall market, GULF RESOURCES INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- Net operating cash flow has decreased to $8.76 million or 37.51% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, GULF RESOURCES INC has marginally lower results.
- You can view the full analysis from the report here: GURE Ratings Report