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NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 0.3%. Since the same quarter one year prior, revenues rose by 26.5%. 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, WIBC's share price has jumped by 69.06%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- The gross profit margin for WILSHIRE BANCORP INC is currently very high, coming in at 91.52%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 23.98% trails the industry average.
- WILSHIRE BANCORP INC's earnings per share declined by 28.6% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, WILSHIRE BANCORP INC reported lower earnings of $0.63 versus $1.31 in the prior year. This year, the market expects an improvement in earnings ($0.74 versus $0.63).
- 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 Commercial Banks industry and the overall market on the basis of return on equity, WILSHIRE BANCORP INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
Wilshire Bancorp, Inc. operates as the holding company for Wilshire State Bank that offers a range of financial products and services. The company operates in three segments: Banking Operations, Trade Finance Services, and Small Business Administration Lending Services. The company has a P/E ratio of 15, below the S&P 500 P/E ratio of 17.7. Wilshire has a market cap of $731.2 million and is part of the financial sector and banking industry. Shares are down 5.5% year to date as of the close of trading on Thursday.
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