NEW YORK ( TheStreet) -- CTPartners Executive Search (AMEX: CTP) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its growth in earnings per share and increase in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall. Highlights from the ratings report include:
- CTPARTNERS EXEC SEARCH INC has improved earnings per share by 13.7% 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. This trend suggests that the performance of the business is improving. During the past fiscal year, CTPARTNERS EXEC SEARCH INC continued to lose money by earning -$0.45 versus -$0.73 in the prior year. This year, the market expects an improvement in earnings ($0.45 versus -$0.45).
- CTP's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 53.41%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 9.8%. Since the same quarter one year prior, revenues slightly dropped by 1.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Professional Services industry average. The net income increased by 8.1% when compared to the same quarter one year prior, going from -$4.99 million to -$4.58 million.
- The gross profit margin for CTPARTNERS EXEC SEARCH INC is currently extremely low, coming in at 2.40%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -16.20% is significantly below that of the industry average.
-- Written by a member of TheStreet RatingsStaff