NEW YORK ( TheStreet) -- Iberiabank (Nasdaq: IBKC) 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, expanding profit margins, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 1.5%. Since the same quarter one year prior, revenues rose by 10.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The gross profit margin for IBERIABANK CORP is currently very high, coming in at 82.00%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, IBKC's net profit margin of 11.50% significantly trails the industry average.
- Net operating cash flow has significantly increased by 56.86% to -$56.74 million when compared to the same quarter last year. Despite an increase in cash flow of 56.86%, IBERIABANK CORP is still growing at a significantly lower rate than the industry average of 1484.87%.
- IBERIABANK CORP has improved earnings per share by 11.5% 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, IBERIABANK CORP reported lower earnings of $1.92 versus $7.33 in the prior year. This year, the market expects an improvement in earnings ($1.98 versus $1.92).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Commercial Banks industry average, but is greater than that of the S&P 500. The net income increased by 24.1% when compared to the same quarter one year prior, going from $13.94 million to $17.30 million.