- The revenue growth greatly exceeded the industry average of 16.4%. Since the same quarter one year prior, revenues rose by 17.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- WIT's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, WIT has a quick ratio of 1.91, which demonstrates the ability of the company to cover short-term liquidity needs.
- WIPRO LTD has improved earnings per share by 49.5% 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 two years. We feel that this trend should continue. During the past fiscal year, WIPRO LTD increased its bottom line by earning $0.53 versus $0.41 in the prior year. This year, the market expects an improvement in earnings ($0.56 versus $0.53).
- The net income growth from the same quarter one year ago has significantly exceeded that of the IT Services industry average, but is less than that of the S&P 500. The net income increased by 23.9% when compared to the same quarter one year prior, going from $322.65 million to $399.85 million.
- Powered by its strong earnings growth of 49.53% and other important driving factors, this stock has surged by 52.94% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
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. The Technology sector as a whole closed the day down 1.5% versus the S&P 500, which was up 0.6%. Laggards within the Technology sector included LookSmart ( LOOK), down 2.7%, BTU International ( BTUI), down 3.8%, Technical Communications ( TCCO), down 2.4%, Wells-Gardner Electronic ( WGA), down 2.3% and Kingtone Wirelessinfo Solution ( KONE), down 4.4%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today: Wipro ( WIT) is one of the companies that pushed the Technology sector lower today. Wipro was down $0.23 (1.9%) to $11.54 on average volume. Throughout the day, 684,854 shares of Wipro exchanged hands as compared to its average daily volume of 581,700 shares. The stock ranged in price between $11.47-$11.77 after having opened the day at $11.75 as compared to the previous trading day's close of $11.77. Wipro Limited provides information technology (IT) products and services worldwide. It operates in two segments, IT Services and IT Products. Wipro has a market cap of $29.3 billion and is part of the computer software & services industry. Shares are down 6.5% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Wipro a buy, 1 analyst rates it a sell, and 5 rate it a hold. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings rates Wipro as a buy. 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, impressive record of earnings per share growth, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins. Highlights from TheStreet Ratings analysis on WIT go as follows: