NEW YORK ( TheStreet) -- UTi Worldwide (Nasdaq: UTIW) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- UTI WORLDWIDE INC has improved earnings per share by 7.7% 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 two years. We feel that this trend should continue. During the past fiscal year, UTI WORLDWIDE INC increased its bottom line by earning $0.69 versus $0.42 in the prior year. This year, the market expects an improvement in earnings ($0.81 versus $0.69).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Air Freight & Logistics industry average, but is less than that of the S&P 500. The net income increased by 8.0% when compared to the same quarter one year prior, going from $26.42 million to $28.54 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.3%. Since the same quarter one year prior, revenues slightly increased by 5.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- 35.10% is the gross profit margin for UTI WORLDWIDE INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 2.30% trails the industry average.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Air Freight & Logistics industry and the overall market on the basis of return on equity, UTI WORLDWIDE INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
-- Written by a member of TheStreet RatingsStaff