NEW YORK ( TheStreet) -- Inland Real Estate Corporation (NYSE: IRC) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins.
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- IRC's revenue growth has slightly outpaced the industry average of 15.2%. Since the same quarter one year prior, revenues rose by 21.4%. 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 significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 169.3% when compared to the same quarter one year prior, rising from -$10.32 million to $7.15 million.
- INLAND REAL ESTATE CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, INLAND REAL ESTATE CORP reported poor results of -$0.11 versus -$0.01 in the prior year. This year, the market expects an improvement in earnings ($0.12 versus -$0.11).
- The gross profit margin for INLAND REAL ESTATE CORP is rather low; currently it is at 23.80%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 17.40% trails the industry average.
- IRC has underperformed the S&P 500 Index, declining 5.02% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
-- Written by a member of TheStreet Ratings Staff