Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. NEW YORK ( TheStreet) -- Meadowbrook Insurance Group (NYSE: MIG) has been downgraded by TheStreet Ratings from hold to sell. Among the areas we feel are negative, one of the most important has been the company's poor growth in earnings per share.
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- MEADOWBROOK INS GROUP INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, MEADOWBROOK INS GROUP INC reported lower earnings of $0.24 versus $0.80 in the prior year. For the next year, the market is expecting a contraction of 16.7% in earnings ($0.20 versus $0.24).
- The net income has significantly decreased by 1362.2% when compared to the same quarter one year ago, falling from -$7.73 million to -$113.06 million.
- Since the same quarter one year prior, revenues fell by 15.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation.
- Net operating cash flow has significantly decreased to -$4.12 million or 111.83% when compared to the same quarter last year.