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NEW YORK (TheStreet) -- Consolidated Comm Hldgs (CNSL) has been downgraded by TheStreet Ratings from Buy to Hold with a ratings score of C+ . TheStreet Ratings Team has this to say about their recommendation:
"We rate CONSOLIDATED COMM HLDGS INC (CNSL) 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 expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, premium valuation and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CONSOLIDATED COMM HLDGS INC's earnings per share declined by 26.9% 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, CONSOLIDATED COMM HLDGS INC increased its bottom line by earning $0.74 versus $0.15 in the prior year. This year, the market expects an improvement in earnings ($0.93 versus $0.74).
- The gross profit margin for CONSOLIDATED COMM HLDGS INC is rather high; currently it is at 62.13%. Regardless of CNSL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.12% trails the industry average.
- CNSL, with its decline in revenue, slightly underperformed the industry average of 1.1%. Since the same quarter one year prior, revenues slightly dropped by 1.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- 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 Diversified Telecommunication Services industry. The net income has significantly decreased by 34.6% when compared to the same quarter one year ago, falling from $11.69 million to $7.64 million.
- You can view the full analysis from the report here: CNSL Ratings Report
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