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NEW YORK (TheStreet) -- QEP Midstream Partners (QEPM) has been downgraded by TheStreet Ratings from Hold to Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate QEP MIDSTREAM PARTNERS LP (QEPM) 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 generally disappointing historical performance in the stock itself and unimpressive growth in net income."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 28.46%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 41.93% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- 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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 39.6% when compared to the same quarter one year ago, falling from $16.40 million to $9.90 million.
- QEPM, with its decline in revenue, underperformed when compared the industry average of 1.9%. Since the same quarter one year prior, revenues fell by 24.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- QEP MIDSTREAM PARTNERS LP's earnings per share declined by 41.9% in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($0.95 versus $0.80).
- In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, QEP MIDSTREAM PARTNERS LP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full analysis from the report here: QEPM Ratings Report