NEW YORK (TheStreet) -- Shares of Infoblox (BLOX) were up 6.41% to $14.45 in morning trading Friday after the networking technology manufacturer reported fourth-quarter earnings that surpassed analysts' expectations.
The company reported earnings of 3 cents a share on revenue of $64.9 million. The consensus estimate called for earnings of a penny a share on revenue of $60.5 million.
Infoblox also issued first-quarter revenue guidance in the range of $63 million to $65 million, which beat analysts' estimate of $61.4 million.
More than 4.3 million shares had changed hands as of 11:30 a.m., compared to the average volume of 2,122,890.
Separately, TheStreet Ratings team rates INFOBLOX INC as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate INFOBLOX INC (BLOX) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow and generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 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 Software industry. The net income has significantly decreased by 2795.7% when compared to the same quarter one year ago, falling from -$0.26 million to -$7.44 million.
- Net operating cash flow has decreased to $9.53 million or 27.08% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 61.98%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1300.00% 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.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Software industry and the overall market, INFOBLOX INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for INFOBLOX INC is currently very high, coming in at 77.89%. Regardless of BLOX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BLOX's net profit margin of -12.19% significantly underperformed when compared to the industry average.
- You can view the full analysis from the report here: BLOX Ratings Report
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