NEW YORK ( TheStreet) -- Atlantic Tele-Network (Nasdaq: ATNI) has been downgraded by TheStreet Ratings from buy to hold. Among the primary strengths of the company is its robust revenue growth -- not just in the most recent periods but in previous quarters as well. At the same time, however, we also find weaknesses including deteriorating net income, generally poor debt management and disappointing return on equity. Highlights from the ratings report include:
- Net operating cash flow has significantly decreased to $22.04 million or 56.49% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The gross profit margin for ATLANTIC TELE-NETWORK INC is rather low; currently it is at 16.50%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.90% trails that of 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 Diversified Telecommunication Services industry. The net income has significantly decreased by 92.7% when compared to the same quarter one year ago, falling from $24.80 million to $1.82 million.
- ATLANTIC TELE-NETWORK INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ATLANTIC TELE-NETWORK INC increased its bottom line by earning $2.48 versus $2.32 in the prior year. For the next year, the market is expecting a contraction of 41.5% in earnings ($1.45 versus $2.48).
- ATNI's revenue growth has slightly outpaced the industry average of 11.4%. Since the same quarter one year prior, revenues rose by 17.6%. 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.