Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

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NEW YORK (

TheStreet

)

-- Hudson Pacific Properties

(NYSE:

HPP

) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

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Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 12.2%. Since the same quarter one year prior, revenues rose by 29.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • HUDSON PACIFIC PPTYS INC has improved earnings per share by 25.0% 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, HUDSON PACIFIC PPTYS INC reported poor results of -$0.41 versus -$0.36 in the prior year. This year, the market expects an improvement in earnings (-$0.27 versus -$0.41).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, HUDSON PACIFIC PPTYS INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The gross profit margin for HUDSON PACIFIC PPTYS INC is currently extremely low, coming in at 12.00%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.88% significantly trails the industry average.

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Hudson Pacific Properties, Inc. operates as a vertically integrated real estate trust (REIT) in the United States. Hudson Pacific has a market cap of $1.14 billion and is part of the financial sector and real estate industry. Shares are down 2.9% year to date as of the close of trading on Wednesday.

You can view the full

Hudson Pacific Ratings Report

or get investment ideas from our

investment research center

.

-- Written by a member of TheStreet Ratings Staff

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.