NEW YORK ( TheStreet) -- Pike Electric Corporation (NYSE: PIKE) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- PIKE's revenue growth has slightly outpaced the industry average of 8.9%. Since the same quarter one year prior, revenues rose by 15.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- PIKE ELECTRIC CORP reported significant earnings per share improvement 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 year. We feel that this trend should continue. During the past fiscal year, PIKE ELECTRIC CORP turned its bottom line around by earning $0.04 versus -$0.40 in the prior year. This year, the market expects an improvement in earnings ($0.42 versus $0.04).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Construction & Engineering industry. The net income increased by 379.5% when compared to the same quarter one year prior, rising from $1.02 million to $4.89 million.
- Net operating cash flow has increased to $22.57 million or 10.38% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -12.71%.
- Despite currently having a low debt-to-equity ratio of 0.42, 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 PIKE's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.95 is high and demonstrates strong liquidity.
-- Written by a member of TheStreet RatingsStaff