TSC Ratings' Updates: AllianceBernstein

The following ratings changes were generated on Tuesday, March 3.

We've downgraded investment management firm AllianceBernstein Holding(AB Quote) from hold to sell, driven by its feeble growth in its earnings per share, weak operating cash flow and generally disappointing historical performance in the stock itself.

The company has experienced a steep decline in earnings per share of 74.5% in the most recent quarter compared with the year-ago quarter, and we anticipate that its two-year trend of declining EPS should continue in the coming year. Net operating cash flow decreased by 49.4% to $52.5 million compared with the same quarter last year, and return on equity also decreased, a sign of weakness within the company. Net income feel 73.9%, from $92.2 million to $24 million.

Shares tumbled 81.9% over the year, underperforming the S&P 500, but that should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy. ...