- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 133.3% when compared to the same quarter one year ago, falling from -$4.42 million to -$10.31 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, IKANOS COMMUNICATIONS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$1.85 million or 270.50% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 66.41%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 66.66% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- IKANOS COMMUNICATIONS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, IKANOS COMMUNICATIONS INC reported poor results of -$0.40 versus -$0.24 in the prior year. This year, the market expects an improvement in earnings (-$0.36 versus -$0.40).
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. Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 6.20 points (0.0%) at 16,937 as of Tuesday, June 10, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 968 issues advancing vs. 2,021 declining with 151 unchanged. The Telecommunications industry as a whole closed the day up 0.1% versus the S&P 500, which was down 0.1%. Top gainers within the Telecommunications industry included Technical Communications ( TCCO), up 3.1%, Otelco ( OTEL), up 1.6%, Ambient ( AMBT), up 11.8%, RELM Wireless ( RWC), up 4.5% and Ikanos Communications ( IKAN), up 7.4%. TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today: Ikanos Communications ( IKAN) is one of the companies that pushed the Telecommunications industry higher today. Ikanos Communications was up $0.03 (7.4%) to $0.47 on light volume. Throughout the day, 122,891 shares of Ikanos Communications exchanged hands as compared to its average daily volume of 294,800 shares. The stock ranged in a price between $0.45-$0.52 after having opened the day at $0.48 as compared to the previous trading day's close of $0.44. Ikanos Communications, Inc. designs, develops, markets, and sells semiconductors and integrated firmware products for the digital home worldwide. It offers various digital subscriber line (DSL) processors for a range of power carrier infrastructure and customer premises equipment devices. Ikanos Communications has a market cap of $42.0 million and is part of the technology sector. Shares are down 64.6% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate Ikanos Communications a buy, no analysts rate it a sell, and none 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 Ikanos Communications as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share. Highlights from TheStreet Ratings analysis on IKAN go as follows: