NEW YORK (TheStreet) -- Shares of Sears Hometown and Outlet Stores Inc. (SHOS) - Get Report are declining -8.96% to $20.48 on heavy trading volume today following the company's 2014 first quarter results, which showed a decrease in net sales to $589.9, compared to $601.1 million from the same period last year.
The retail company, which focuses on selling home appliances, garden equipment, hardware, and other tools, posted a net income of $3.67 million versus $14.9 million from the 2013 first quarter.
Sears Hometown's earnings per share for the most recent quarter was 16 cents per basic and diluted share, compared to 65 cents per basic and diluted share from the year-ago quarter.
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Separately, TheStreet Ratings team rates SUNSTONE HOTEL INVESTORS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SUNSTONE HOTEL INVESTORS INC (SHO) 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 impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 10.3%. Since the same quarter one year prior, revenues rose by 24.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. 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.
- The gross profit margin for SUNSTONE HOTEL INVESTORS INC is currently extremely low, coming in at 6.15%. Regardless of SHO's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, SHO's net profit margin of -2.34% significantly underperformed when compared to the industry average.
- 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 Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 120.0% when compared to the same quarter one year ago, falling from $28.62 million to -$5.73 million.
- You can view the full analysis from the report here: SHO Ratings Report