NEW YORK (TheStreet) -- Shares of American Electric Technologies Inc. (AETI) are higher by 5.66% to $6.16 on Tuesday after the company reported a 21% increase in revenue to $17.4 million for the 2014 first quarter, from $14.4 million from the year ago quarter.
However, the energy company said net income for the most recent quarter declined to $0.5 million, or 6 cents per share, from $1.7 million, or 18 cents per diluted share from the 2013 first quarter.
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TheStreet Ratings team rates AMERICAN ELECTRIC TECH INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERICAN ELECTRIC TECH INC (AETI) a BUY. This is driven by multiple strengths, 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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 3.3%. Since the same quarter one year prior, revenues rose by 20.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- AETI's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.38, which illustrates the ability to avoid short-term cash problems.
- The net income growth from the same quarter one year ago has significantly exceeded that of the Electrical Equipment industry average, but is less than that of the S&P 500. The net income increased by 18.1% when compared to the same quarter one year prior, going from $0.57 million to $0.68 million.
- Net operating cash flow has significantly increased by 1149.27% to $2.17 million when compared to the same quarter last year. In addition, AMERICAN ELECTRIC TECH INC has also vastly surpassed the industry average cash flow growth rate of -16.48%.
- You can view the full analysis from the report here: AETI Ratings Report