NEW YORK ( TheStreet) -- Bolt Technology Corporation (Nasdaq: BOLT) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow. Highlights from the ratings report include:
- The revenue growth significantly trails the industry average of 47.9%. Since the same quarter one year prior, revenues slightly increased by 9.5%. 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.
- BOLT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 5.30, which clearly demonstrates the ability to cover short-term cash needs.
- BOLT TECHNOLOGY CORP's earnings per share declined by 15.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BOLT TECHNOLOGY CORP increased its bottom line by earning $0.65 versus $0.58 in the prior year. This year, the market expects an improvement in earnings ($0.89 versus $0.65).
- Net operating cash flow has decreased to $1.45 million or 49.44% 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 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 Energy Equipment & Services industry. The net income has decreased by 15.2% when compared to the same quarter one year ago, dropping from $1.63 million to $1.39 million.