NEW YORK ( TheStreet) -- Bally Technologies (NYSE: BYI) 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, notable return on equity, good cash flow from operations, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- BYI's revenue growth has slightly outpaced the industry average of 10.8%. Since the same quarter one year prior, revenues rose by 14.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, BALLY TECHNOLOGIES INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has significantly increased by 331.67% to $46.29 million when compared to the same quarter last year. In addition, BALLY TECHNOLOGIES INC has also vastly surpassed the industry average cash flow growth rate of 4.95%.
- BALLY TECHNOLOGIES INC has improved earnings per share by 12.5% 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, BALLY TECHNOLOGIES INC reported lower earnings of $1.83 versus $1.90 in the prior year. This year, the market expects an improvement in earnings ($2.38 versus $1.83).
- The gross profit margin for BALLY TECHNOLOGIES INC is currently very high, coming in at 70.90%. Regardless of BYI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 10.50% trails the industry average.