Why Multi-Color (LABL) Stock Is Spiking Today

NEW YORK (TheStreet) --Shares of Multi-Color Corp. (LABL) are higher by 8.06% to $37.99 on Friday morning after the company reported 2014 fourth quarter earnings of 68 cents per share, beating the consensus estimate of 58 cents per share.

The company, which delivers label solutions to help businesses build up their brands, reported revenue of $193.50 million for the most recent quarter, exceeding the consensus estimate of $187.53 million.

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Separately, TheStreet Ratings team rates MULTI-COLOR CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate MULTI-COLOR CORP (LABL) 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 revenue growth, increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • LABL's revenue growth has slightly outpaced the industry average of 3.8%. Since the same quarter one year prior, revenues slightly increased by 8.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. 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.
  • MULTI-COLOR CORP has improved earnings per share by 47.2% 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, MULTI-COLOR CORP increased its bottom line by earning $1.86 versus $1.39 in the prior year. This year, the market expects an improvement in earnings ($2.06 versus $1.86).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Commercial Services & Supplies industry average. The net income increased by 51.0% when compared to the same quarter one year prior, rising from $5.88 million to $8.88 million.
  • You can view the full analysis from the report here: LABL Ratings Report
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