NEW YORK ( TheStreet) -- Velti (Nasdaq: VELT) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year. Highlights from the ratings report include:
- VELT's very impressive revenue growth exceeded the industry average of 24.7%. Since the same quarter one year prior, revenues leaped by 51.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- VELT's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, VELT has a quick ratio of 2.01, which demonstrates the ability of the company to cover short-term liquidity needs.
- Compared to other companies in the Internet Software & Services industry and the overall market, VELTI PLC's return on equity significantly trails that of both the industry average and the S&P 500.
- In its most recent trading session, VELT has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors.
- VELTI PLC reported significant earnings per share improvement 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, VELTI PLC reported poor results of -$0.40 versus -$0.07 in the prior year. This year, the market expects an improvement in earnings ($0.64 versus -$0.40).
-- Written by a member of TheStreet RatingsStaff