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NEW YORK (TheStreet) -- Quality Distribution  (QLTY) has been upgraded by TheStreet Ratings from Sell to Hold with a ratings score of C.  TheStreet Ratings Team has this to say about their recommendation:

TheStreet Ratings team rates QUALITY DISTRIBUTION INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate QUALITY DISTRIBUTION INC (QLTY) 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 impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • QUALITY DISTRIBUTION INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, QUALITY DISTRIBUTION INC turned its bottom line around by earning $0.74 versus -$1.59 in the prior year. This year, the market expects an improvement in earnings ($0.82 versus $0.74).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Road & Rail industry. The net income increased by 111.5% when compared to the same quarter one year prior, rising from -$22.80 million to $2.62 million.
  • QLTY has underperformed the S&P 500 Index, declining 18.67% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The gross profit margin for QUALITY DISTRIBUTION INC is currently extremely low, coming in at 9.94%. Regardless of QLTY's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, QLTY's net profit margin of 1.07% is significantly lower than the industry average.
  • You can view the full analysis from the report here: QLTY Ratings Report