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NEW YORK (TheStreet) -- Shares of InterCloud Systems (ICLD) were gaining 7.1% to $3.62 Wednesday after the IT company announced it was awarded over $2 million in professional services agreements.

InterCloud said the new service agreements relate to WiFi and DAS networks for existing and new clients. The company expects to complete the contract work in the second and third quarters of 2015.

"Our sales and engineering teams continue to win new business from our pipeline at a faster pace than in 2014," InterCloud CEO Mark Munro said in a statement. "These new contracts confirm that InterCloud's distinctive suite of services have a competitive advantage within the enterprise and service provider markets and that our sales and engineering teams are executing more efficiently."

About 2.1 million shares of InterCloud were traded by 11:31 a.m. Wednesday, compared to the company's average trading volume of about 2.6 million shares a day.

TheStreet Ratings team rates INTERCLOUD SYSTEMS INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:

"We rate INTERCLOUD SYSTEMS INC (ICLD) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • 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 IT Services industry. The net income has significantly decreased by 261.1% when compared to the same quarter one year ago, falling from $6.66 million to -$10.72 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the IT Services industry and the overall market, INTERCLOUD SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • ICLD has underperformed the S&P 500 Index, declining 22.41% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 35.13% is the gross profit margin for INTERCLOUD SYSTEMS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -51.08% is in-line with the industry average.
  • INTERCLOUD SYSTEMS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, INTERCLOUD SYSTEMS INC continued to lose money by earning -$3.73 versus -$7.50 in the prior year. This year, the market expects an improvement in earnings ($0.41 versus -$3.73).
  • You can view the full analysis from the report here: ICLD Ratings Report