NEW YORK ( TheStreet) -- Pacific Continental (Nasdaq: PCBK) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, expanding profit margins, good cash flow from operations and notable return on equity. 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:
- PACIFIC CONTINENTAL CORP 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 year. We feel that this trend should continue. During the past fiscal year, PACIFIC CONTINENTAL CORP turned its bottom line around by earning $0.28 versus -$0.38 in the prior year. This year, the market expects an improvement in earnings ($0.47 versus $0.28).
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Commercial Banks industry average. The net income increased by 124.7% when compared to the same quarter one year prior, rising from $1.15 million to $2.59 million.
- The gross profit margin for PACIFIC CONTINENTAL CORP is currently very high, coming in at 76.80%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, PCBK's net profit margin of 15.50% significantly trails the industry average.
- Net operating cash flow has significantly increased by 68.95% to $8.97 million when compared to the same quarter last year. Despite an increase in cash flow of 68.95%, PACIFIC CONTINENTAL CORP is still growing at a significantly lower rate than the industry average of 317.31%.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 2.5%. Since the same quarter one year prior, revenues slightly dropped by 1.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.