NEW YORK ( TheStreet) -- Eagle Rock Energy Partners (Nasdaq: EROC) 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, increase in net income, good cash flow from operations, impressive record of earnings per share growth and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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- The revenue growth greatly exceeded the industry average of 6.2%. Since the same quarter one year prior, revenues rose by 43.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry average. The net income increased by 6.3% when compared to the same quarter one year prior, going from -$53.72 million to -$50.33 million.
- Net operating cash flow has significantly increased by 89.73% to $38.99 million when compared to the same quarter last year. In addition, EAGLE ROCK ENERGY PARTNRS LP has also vastly surpassed the industry average cash flow growth rate of -52.08%.
- EAGLE ROCK ENERGY PARTNRS LP has improved earnings per share by 38.5% 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, EAGLE ROCK ENERGY PARTNRS LP turned its bottom line around by earning $0.38 versus -$0.22 in the prior year. For the next year, the market is expecting a contraction of 36.8% in earnings ($0.24 versus $0.38).
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, EAGLE ROCK ENERGY PARTNRS LP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
-- Written by a member of TheStreet Ratings Staff