NEW YORK ( TheStreet) -- P.A.M. Transportation (Nasdaq: PTSI) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself. Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Road & Rail industry. The net income increased by 112.0% when compared to the same quarter one year prior, rising from -$1.11 million to $0.13 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 15.6%. Since the same quarter one year prior, revenues rose by 14.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- P.A.M. TRANSPORTATION SVCS 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, P.A.M. TRANSPORTATION SVCS reported poor results of -$0.30 versus -$0.07 in the prior year. This year, the market expects an improvement in earnings ($0.09 versus -$0.30).
- PTSI has underperformed the S&P 500 Index, declining 6.50% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The gross profit margin for P.A.M. TRANSPORTATION SVCS is currently extremely low, coming in at 10.10%. Regardless of PTSI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, PTSI's net profit margin of 0.10% is significantly lower than the same period one year prior.
-- Written by a member of TheStreet RatingsStaff