Elizabeth Arden Inc. Stock Upgraded (RDEN)

NEW YORK ( TheStreet) -- Elizabeth Arden (Nasdaq: RDEN) 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, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • RDEN's revenue growth has slightly outpaced the industry average of 7.7%. Since the same quarter one year prior, revenues rose by 11.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Powered by its strong earnings growth of 125.00% and other important driving factors, this stock has surged by 112.06% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, RDEN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • ELIZABETH ARDEN 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 two years. We feel that this trend should continue. During the past fiscal year, ELIZABETH ARDEN INC increased its bottom line by earning $1.42 versus $0.67 in the prior year. This year, the market expects an improvement in earnings ($1.96 versus $1.42).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Personal Products industry. The net income increased by 135.3% when compared to the same quarter one year prior, rising from $2.29 million to $5.40 million.
  • Net operating cash flow has significantly increased by 251.01% to $38.56 million when compared to the same quarter last year. In addition, ELIZABETH ARDEN INC has also vastly surpassed the industry average cash flow growth rate of 6.02%.

Elizabeth Arden, Inc., a beauty products company, engages in manufacture, distribution, marketing, and sale of fragrances, skin care, and cosmetic products to retailers and other outlets in the United States and internationally. The company has a P/E ratio of 20.2, equal to the average consumer non-durables industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Elizabeth Arden has a market cap of $773.4 million and is part of the consumer goods sector and consumer non-durables industry. Shares are up 33.7% year to date as of the close of trading on Friday.

You can view the full Elizabeth Arden Ratings Report or get investment ideas from our investment research center.

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