Helix Energy Solutions Group Inc Stock Upgraded (HLX)

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) -- Helix Energy Solutions Group (NYSE: HLX) 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, compelling growth in net income, expanding profit margins and attractive valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

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Highlights from the ratings report include:
  • HLX's revenue growth has slightly outpaced the industry average of 8.0%. Since the same quarter one year prior, revenues rose by 12.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • HELIX ENERGY SOLUTIONS GROUP reported significant earnings per share improvement 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, HELIX ENERGY SOLUTIONS GROUP turned its bottom line around by earning $1.04 versus -$0.67 in the prior year. This year, the market expects an improvement in earnings ($1.60 versus $1.04).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 121.3% when compared to the same quarter one year prior, rising from -$171.53 million to $36.50 million.
  • 43.27% is the gross profit margin for HELIX ENERGY SOLUTIONS GROUP which we consider to be strong. It has increased significantly from the same period last year. Along with this, the net profit margin of 16.09% is above that of the industry average.

Helix Energy Solutions Group, Inc., an offshore energy company, provides specialty services to the offshore energy industry in the United States, the United Kingdom, and internationally. The company operates in two segments, Contracting Services and Production Facilities. Helix Energy Solutions Group has a market cap of $2.36 billion and is part of the basic materials sector and energy industry. Shares are down 3.9% year to date as of the close of trading on Friday.

You can view the full Helix Energy Solutions Group Ratings Report or get investment ideas from our investment research center.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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