NEW YORK (
-- Double Eagle Petroleum Company
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 9328.6% when compared to the same quarter one year ago, falling from $0.03 million to -$2.58 million.
- DOUBLE EAGLE PETROLEUM CO has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, DOUBLE EAGLE PETROLEUM CO turned its bottom line around by earning $0.16 versus -$0.26 in the prior year. For the next year, the market is expecting a contraction of 268.8% in earnings (-$0.27 versus $0.16).
- 48.70% is the gross profit margin for DOUBLE EAGLE PETROLEUM CO which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, DBLE's net profit margin of -28.70% significantly underperformed when compared to the industry average.
- Net operating cash flow has increased to $3.79 million or 46.56% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -0.95%.
Double Eagle Petroleum Co., an energy company, engages in the exploration, development, production, and sale of natural gas and crude oil primarily in the Rocky Mountain Basins of the western United States. The company has a P/E ratio of 27.1, equal to the average energy industry P/E ratio and above the S&P 500 P/E ratio of 17.3. Double Eagle has a market cap of $120.8 million and is part of the
industry. Shares are up 103% year to date as of the close of trading on Tuesday.
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