NEW YORK (TheStreet) --Shares of Rex Energy Corporation undefined are higher 3.12% to $21.33 on Wednesday due to strong 2014 first quarter earnings.
The independent oil and gas company reported net income of $8.9 million, or 17 cents per basic share, compared to $2.8 million, or 5 cents per basic share from the same period in 2013.
Total operating revenue increased to $96.6 million from $47.5 million reported in the 2013 first quarter.
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TheStreet Ratings team rates REX ENERGY CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate REX ENERGY CORP (REXX) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- REXX's very impressive revenue growth greatly exceeded the industry average of 7.5%. Since the same quarter one year prior, revenues leaped by 53.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, REXX's share price has jumped by 35.22%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The gross profit margin for REX ENERGY CORP is rather high; currently it is at 65.95%. Regardless of REXX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, REXX's net profit margin of -19.81% significantly underperformed when compared to the industry average.
- 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 Oil, Gas & Consumable Fuels industry and the overall market, REX ENERGY CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to $2.56 million or 87.11% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: REXX Ratings Report