Cray Inc. (CRAY) Slips After Friday's Rally

NEW YORK (TheStreet) -- After exploding 39% on Friday, Cray Inc.  (CRAY) is reversing gains this week.

By early afternoon, shares had taken off 13.2% to $36.17. Trading volume of 1.5 million is more than double its three-month daily average.

On Friday, the stock rallied after the supercomputer developer reported fourth-quarter and full-year earnings well above consensus. Fiscal 2013 revenue of $525.7 million was 25% higher than a year earlier and came in as analysts had expected.

Full-year net income of 76 cents a share was 10 cents higher than consensus, according to those surveyed by Thomson Reuters.

In the three months to December, the Seattle-based company recorded net income of $1.48 a share on revenue 62% higher year over year to $307.7 million. Analysts had predicted per-share earnings of $1.36 on $300.56 million in sales.

Also See: Cray (CRAY) Showing Signs Of Perilous Reversal Today

Also See: Why Cray Inc. Is Exploding on Friday

TheStreet Ratings team rates CRAY INC as a Hold with a ratings score of C+. The team has this to say about their recommendation:

"We rate CRAY INC (CRAY) 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 robust 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 deteriorating net income, disappointing return on equity and weak operating cash flow."

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