NEW YORK (TheStreet) -- Shares of Exelis Inc. (XLS) are up 0.99% to $17.27 on Monday as it was awarded a $32 million contract by the U.S. Air Force in Europe for maintenance services at the government family housing facilities within the Kaiserslautern Military Community in Germany.
Separately, TheStreet Ratings team rates EXELIS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXELIS INC (XLS) 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 solid stock price performance, increase in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including poor profit margins, weak operating cash flow and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Aerospace & Defense industry average. The net income increased by 18.2% when compared to the same quarter one year prior, going from $44.00 million to $52.00 million.
- EXELIS INC has improved earnings per share by 17.4% 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, EXELIS INC reported lower earnings of $1.45 versus $1.75 in the prior year. This year, the market expects an improvement in earnings ($1.50 versus $1.45).
- The gross profit margin for EXELIS INC is rather low; currently it is at 23.35%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.97% trails that of the industry average.
- Net operating cash flow has significantly decreased to -$158.00 million or 143.07% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: XLS Ratings Report