NEW YORK ( TheStreet) -- Hornbeck Offshore Services (NYSE: HOS) 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, solid stock price performance, increase in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 15.4%. Since the same quarter one year prior, revenues rose by 26.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 350.00% and other important driving factors, this stock has surged by 66.18% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, HOS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 444.6% when compared to the same quarter one year prior, rising from $2.62 million to $14.24 million.
- Net operating cash flow has significantly increased by 57.86% to $46.56 million when compared to the same quarter last year. In addition, HORNBECK OFFSHORE SVCS INC has also vastly surpassed the industry average cash flow growth rate of -9.88%.
- 48.10% is the gross profit margin for HORNBECK OFFSHORE SVCS 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 11.60% trails the industry average.
-- Written by a member of TheStreet RatingsStaff