NEW YORK ( TheStreet) -- UTStarcom Holdings (Nasdaq: UTSI) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and a generally disappointing performance in the stock itself. Highlights from the ratings report include:
- UTSTARCOM HOLDINGS 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 two years. During the past fiscal year, UTSTARCOM HOLDINGS CORP turned its bottom line around by earning $0.08 versus -$0.47 in the prior year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Communications Equipment industry. The net income increased by 117.7% when compared to the same quarter one year prior, rising from -$23.03 million to $4.07 million.
- The gross profit margin for UTSTARCOM HOLDINGS CORP is currently lower than what is desirable, coming in at 34.90%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, UTSI's net profit margin of 4.90% is significantly lower than the same period one year prior.
- Net operating cash flow has significantly decreased to -$2.25 million or 143.04% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
-- Written by a member of TheStreet RatingsStaff