- RLJ ENTERTAINMENT INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, RLJ ENTERTAINMENT INC reported poor results of -$2.30 versus -$0.49 in the prior year.
- 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 Media industry. The net income has significantly decreased by 183.1% when compared to the same quarter one year ago, falling from -$3.56 million to -$10.07 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Media industry and the overall market, RLJ ENTERTAINMENT INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for RLJ ENTERTAINMENT INC is rather low; currently it is at 20.04%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -33.26% is significantly below that of the industry average.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 38.69%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 200.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
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 89 points (0.5%) at 16,650 as of Wednesday, Aug. 13, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 2,238 issues advancing vs. 759 declining with 137 unchanged. The Services sector as a whole closed the day up 0.3% versus the S&P 500, which was up 0.6%. Top gainers within the Services sector included Crystal Rock Holdings ( CRVP), up 3.0%, Rada Electronics Industries ( RADA), up 8.3%, QKL Stores ( QKLS), up 1.8%, Spar Group ( SGRP), up 3.6% and RLJ Entertainment ( RLJE), up 4.0%. TheStreet Ratings Group would like to highlight 3 stocks pushing the sector higher today: RLJ Entertainment ( RLJE) is one of the companies that pushed the Services sector higher today. RLJ Entertainment was up $0.14 (4.0%) to $3.52 on heavy volume. Throughout the day, 11,994 shares of RLJ Entertainment exchanged hands as compared to its average daily volume of 5,000 shares. The stock ranged in a price between $3.40-$3.52 after having opened the day at $3.43 as compared to the previous trading day's close of $3.38. RLJ Entertainment, Inc., an entertainment company, acquires content rights in British episodic mystery and drama, urban programming, and full-length motion pictures. It operates through three segments: Intellectual Property Licensing, Wholesale, and Direct-to-Consumer. RLJ Entertainment has a market cap of $46.9 million and is part of the diversified services industry. Shares are down 29.3% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate RLJ Entertainment 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 RLJ Entertainment as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself. Highlights from TheStreet Ratings analysis on RLJE go as follows: