TSC Ratings' Updates: Halliburton

The following ratings changes were generated on Tuesday, Oct. 14.

We've downgraded Goodrich(GR Quote), which supplies components, systems and services to the commercial and general aviation airplane markets and global defense and space markets, from buy to hold. Strengths include revenue growth, an impressive record of earnings per share growth and compelling growth in net income. Weaknesses include poor profit margins and a generally disappointing performance in the stock itself.

At 17.3% since the same quarter one year prior, revenue growth came in higher than the industry average of 3.7%. Goodrich reported significant EPS improvement in the most recent quarter, to $3.88 from $3.78 in the same quarter a year ago. The market expects further improvement to $4.95 this year. Return on equity has improved slightly over the same quarter last year, outperforming the S&P 500 but underperforming the aerospace and defense industry average. Goodrich's gross profit margin is lower than desirable at 33.8%, having decreased from the same quarter last year, but net profit margin, at 10.1%, is above the industry average. ...