NEW YORK (TheStreet) -- Shares of Penford Corporation (PENX) are up 6.47% to $13.32 after it reported higher third quarter net income of $3.1 million, or 24 cents per share, versus $2.06 million, or 16 cents per share, a year earlier.
Revenue for the quarter was $119.4 million, compared with $121.7 million in the period a year ago, due to lower corn prices which ultimately impacted its industrial starch and by-products unit.
Penford, which is a specialty food and paper manufacturer, also said it satisfied conditions of a forgivable government loan following a 2008 flood that impacted operations in Cedar Rapids, and had the remaining repayment obligations waived.
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Separately, TheStreet Ratings team rates PENFORD CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate PENFORD CORP (PENX) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins.