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) -- First Connecticut Bancorp (Nasdaq: FBNK) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, increase in net income, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
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- The revenue growth came in higher than the industry average of 3.9%. Since the same quarter one year prior, revenues slightly increased by 8.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- FIRST CONNECTICUT BANCORP has improved earnings per share by 20.0% 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. During the past fiscal year, FIRST CONNECTICUT BANCORP turned its bottom line around by earning $0.23 versus -$0.23 in the prior year. This year, the market expects an improvement in earnings ($0.27 versus $0.23).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Commercial Banks industry average. The net income increased by 12.8% when compared to the same quarter one year prior, going from $0.83 million to $0.94 million.
- Net operating cash flow has increased to $6.88 million or 32.54% when compared to the same quarter last year. In addition, FIRST CONNECTICUT BANCORP has also modestly surpassed the industry average cash flow growth rate of 29.49%.
- The gross profit margin for FIRST CONNECTICUT BANCORP is currently very high, coming in at 85.38%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 5.06% trails the industry average.