NEW YORK (TheStreet) -- Financial Engines (FNGN) shares were upgraded to "market perform" from "underperform" by analysts at Raymond James (RJF) on Wednesday, citing cash flow strength and improved valuation ahead of the company's August 1 second quarter earnings release.
Financial Engines shares are flat in pre-market trading tdoay
Separately, TheStreet Ratings team rates FINANCIAL ENGINES INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate FINANCIAL ENGINES INC (FNGN) 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, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and premium valuation."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 0.5%. Since the same quarter one year prior, revenues rose by 22.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- FINANCIAL ENGINES INC has improved earnings per share by 25.0% 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 two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, FINANCIAL ENGINES INC increased its bottom line by earning $0.56 versus $0.38 in the prior year. This year, the market expects an improvement in earnings ($0.90 versus $0.56).
- 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. Compared to other companies in the Capital Markets industry and the overall market on the basis of return on equity, FINANCIAL ENGINES INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- FNGN has underperformed the S&P 500 Index, declining 21.97% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- You can view the full analysis from the report here: FNGN Ratings Report