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. NEW YORK ( TheStreet) -- Glimcher Realty (NYSE: GRT) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
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- Despite its growing revenue, the company underperformed as compared with the industry average of 10.3%. Since the same quarter one year prior, revenues slightly increased by 8.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Net operating cash flow has increased to $25.91 million or 32.76% when compared to the same quarter last year. In addition, GLIMCHER REALTY TRUST has also modestly surpassed the industry average cash flow growth rate of 30.00%.
- GLIMCHER REALTY TRUST has improved earnings per share by 40.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GLIMCHER REALTY TRUST reported poor results of -$0.27 versus -$0.24 in the prior year. This year, the market expects an improvement in earnings (-$0.09 versus -$0.27).
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, GLIMCHER REALTY TRUST's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for GLIMCHER REALTY TRUST is rather low; currently it is at 20.10%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.76% is significantly below that of the industry average.