By early afternoon, the San Diego-based micro-cap had surged 38.8% to $2.86, on volume 147% higher than normal. In the session so far, 1.6 million shares have changed hands compared to its three-month average daily trading volume of 646,420.
TheStreet Ratings team rates INFOSONICS CORP as a Hold with a ratings score of C. The team has this to say about their recommendation:
"We rate INFOSONICS CORP (IFON) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- IFON's very impressive revenue growth greatly exceeded the industry average of 23.6%. Since the same quarter one year prior, revenues leaped by 83.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- IFON has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.52, which clearly demonstrates the ability to cover short-term cash needs.
- INFOSONICS 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. During the past fiscal year, INFOSONICS CORP continued to lose money by earning -$0.17 versus -$0.18 in the prior year.
- The gross profit margin for INFOSONICS CORP is rather low; currently it is at 19.11%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.34% significantly trails the industry average.
- Net operating cash flow has significantly decreased to -$4.47 million or 308.95% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: IFON Ratings Report