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"We rate CINCINNATI BELL INC (CBB) 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 revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CBB's revenue growth has slightly outpaced the industry average of 1.7%. Since the same quarter one year prior, revenues slightly increased by 2.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. 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.
- 46.95% is the gross profit margin for CINCINNATI BELL INC which we consider to be strong. Regardless of CBB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CBB's net profit margin of 35.69% significantly outperformed against the industry.
- CINCINNATI BELL INC reported significant earnings per share improvement 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, CINCINNATI BELL INC swung to a loss, reporting -$0.32 versus $0.01 in the prior year. This year, the market expects an improvement in earnings ($0.38 versus -$0.32).
- You can view the full analysis from the report here: CBB Ratings Report
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