NEW YORK ( TheStreet) -- Pacific Continental (Nasdaq: PCBK) has been upgraded by TheStreet Ratings from hold to buy. 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, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- PACIFIC CONTINENTAL CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, PACIFIC CONTINENTAL CORP increased its bottom line by earning $0.29 versus $0.28 in the prior year. This year, the market expects an improvement in earnings ($0.60 versus $0.29).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 87.4% when compared to the same quarter one year prior, rising from $1.45 million to $2.72 million.
- Net operating cash flow has increased to $7.86 million or 10.88% when compared to the same quarter last year. Despite an increase in cash flow of 10.88%, PACIFIC CONTINENTAL CORP is still growing at a significantly lower rate than the industry average of 714.71%.
- Despite the weak revenue results, PCBK has outperformed against the industry average of 29.6%. Since the same quarter one year prior, revenues slightly dropped by 2.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, PACIFIC CONTINENTAL CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
-- Written by a member of TheStreet RatingsStaff