Why CST Brands (CST) Stock Is Declining Today

NEW YORK (TheStreet) -- CST Brands (CST) shares are down -5.7% to $34.48 on heavy volume on Tuesday after reporting second quarter earnings of 43 cents per share that was 6 cents worse than analysts were expecting for the quarter.

The convenience goods retailer reported a 1.6% rise in quarterly revenues to $3.26 billion, slight better than analysts expectations of $3.22 billion. 

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TheStreet Ratings team rates CST BRANDS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate CST BRANDS INC (CST) 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 notable return on equity, good cash flow from operations and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and generally higher debt management risk."

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

CST Chart CST data by YCharts

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