NEW YORK (
-- Global Crossing
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins.
Highlights from the ratings report include:
- Net operating cash flow has significantly decreased to -$57.00 million or 83.87% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The gross profit margin for GLOBAL CROSSING LTD is currently lower than what is desirable, coming in at 31.00%. Regardless of GLBC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, GLBC's net profit margin of -5.00% significantly underperformed when compared to the industry average.
- GLOBAL CROSSING LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GLOBAL CROSSING LTD reported poor results of -$2.92 versus -$2.56 in the prior year. This year, the market expects an improvement in earnings (-$2.36 versus -$2.92).
- Despite its growing revenue, the company underperformed as compared with the industry average of 2.1%. Since the same quarter one year prior, revenues slightly increased by 2.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Diversified Telecommunication Services industry. The net income increased by 72.3% when compared to the same quarter one year prior, rising from -$119.00 million to -$33.00 million.
Global Crossing Limited operates as a communications solutions provider primarily in North America, Europe, Latin America, and the Asia/Pacific region. Global Crossing has a market cap of $1.5 billion and is part of the
industry. Shares are up 82.7% year to date as of the previous trading day's close.
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