- 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 Diversified Consumer Services industry. The net income has decreased by 14.6% when compared to the same quarter one year ago, dropping from -$4.02 million to -$4.60 million.
- Net operating cash flow has significantly decreased to -$4.36 million or 87.65% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, LTRE has underperformed the S&P 500 Index, declining 21.75% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Diversified Consumer Services industry and the overall market, LEARNING TREE INTL INC's return on equity significantly trails that of both the industry average and the S&P 500.
- 42.87% is the gross profit margin for LEARNING TREE INTL INC which we consider to be strong. Regardless of LTRE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LTRE's net profit margin of -18.40% significantly underperformed when compared to the industry average.
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. All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 143 points (0.9%) at 16,970 as of Tuesday, July 1, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 2,189 issues advancing vs. 849 declining with 140 unchanged. The Services sector as a whole closed the day up 1.1% versus the S&P 500, which was up 0.8%. Top gainers within the Services sector included Sport Chalet ( SPCHA), up 39.0%, Sport Chalet ( SPCHB), up 14.4%, Starz ( STRZB), up 1.8%, Learning Tree International ( LTRE), up 3.9% and Liberty Media Corp Class B ( LVNTB), up 23.7%. TheStreet Ratings Group would like to highlight 3 stocks pushing the sector higher today: Learning Tree International ( LTRE) is one of the companies that pushed the Services sector higher today. Learning Tree International was up $0.10 (3.9%) to $2.66 on light volume. Throughout the day, 664 shares of Learning Tree International exchanged hands as compared to its average daily volume of 2,200 shares. The stock ranged in a price between $2.66-$2.68 after having opened the day at $2.68 as compared to the previous trading day's close of $2.56. Learning Tree International, Inc., together with its subsidiaries, develops, markets, and delivers a library of instructor-led classroom courses to meet the professional development needs of information technology (IT) professionals and managers worldwide. Learning Tree International has a market cap of $30.1 million and is part of the media industry. Shares are down 18.5% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Learning Tree International 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 Learning Tree International as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and generally disappointing historical performance in the stock itself. Highlights from TheStreet Ratings analysis on LTRE go as follows: