NEW YORK (TheStreet) -- Sonus Networks (SONS - Get Report) stock climbed over Tuesday's session after announcing that it had agreed to repurchase two million shares of common stock at $3.63 a share from Empire Capital Management. Sonus will pay for the shares using cash on hand.
Prior to the transaction, Empire held around 10.7% of shares outstanding. Following the transaction, the firm's stake will be just below 10%.
By market close, shares had added 3.3% to $3.75.
- The revenue growth came in higher than the industry average of 2.3%. Since the same quarter one year prior, revenues rose by 11.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Powered by its strong earnings growth of 80.00% and other important driving factors, this stock has surged by 43.56% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The gross profit margin for SONUS NETWORKS INC is currently very high, coming in at 71.51%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -5.58% is in-line with the industry average.
- 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 Communications Equipment industry and the overall market, SONUS NETWORKS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: SONS Ratings Report