NEW YORK ( TheStreet) -- Atlas Air Worldwide Holdings (Nasdaq: AAWW) 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, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Highlights from the ratings report include:
- AAWW's revenue growth has slightly outpaced the industry average of 9.4%. Since the same quarter one year prior, revenues rose by 11.1%. 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.
- Despite currently having a low debt-to-equity ratio of 0.48, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that AAWW's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.16 is high and demonstrates strong liquidity.
- ATLAS AIR WORLDWIDE HLDG INC's earnings per share declined by 17.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ATLAS AIR WORLDWIDE HLDG INC increased its bottom line by earning $5.42 versus $3.53 in the prior year. For the next year, the market is expecting a contraction of 20.7% in earnings ($4.30 versus $5.42).
- The change in net income from the same quarter one year ago has exceeded that of the Air Freight & Logistics industry average, but is less than that of the S&P 500. The net income has decreased by 16.6% when compared to the same quarter one year ago, dropping from $33.80 million to $28.21 million.