NEW YORK (TheStreet) -- Lifepoint Hospitals (LPNT) shares closed up 6.3% to $56.87 in trading on Friday following the release of the company's first quarter report.
The company reported revenues of $1 billion during the quarter, in line with analysts estimates.
Year over year quarterly net income increased 14.9% to $37.1 million, or 78 cents per diluted share, beating analysts estimates by 13 cents.
Must Read: Warren Buffett's 10 Favorite Growth Stocks
TheStreet Ratings team rates LIFEPOINT HOSPITALS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate LIFEPOINT HOSPITALS INC (LPNT) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.5%. Since the same quarter one year prior, revenues slightly increased by 6.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The gross profit margin for LIFEPOINT HOSPITALS INC is rather low; currently it is at 20.69%. Regardless of LPNT's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, LPNT's net profit margin of 3.73% compares favorably to the industry average.
- Net operating cash flow has decreased to $100.60 million or 16.58% when compared to the same quarter last year. Despite a decrease in cash flow LIFEPOINT HOSPITALS INC is still fairing well by exceeding its industry average cash flow growth rate of -26.67%.
- The change in net income from the same quarter one year ago has exceeded that of the Health Care Providers & Services industry average, but is less than that of the S&P 500. The net income has decreased by 1.9% when compared to the same quarter one year ago, dropping from $36.30 million to $35.60 million.
- You can view the full analysis from the report here: LPNT Ratings Report