NEW YORK (TheStreet) -- Shares of LiveDeal (LIVE) were gaining 13% to $2.88 on heavy trading volume Friday after the mobile marketing company announced that it expects to report record revenue and earnings growth in fiscal year 2015.
The company said it expects a "significant increase in sales revenue" by the end of the fiscal year due to the expansion into online sales of consumer products and the continued growth of its ModernEveryday subsidiary.
"We are enthusiastic about how quickly LiveDeal continues to grow from being strictly a restaurant deal site to a national distributor of consumer products," CEO Jon Isaac said in a statement. "Our hard work is paying off in terms of revenue generation and growth, and we anticipate that our future results will continue to surpass our prior years' revenues, while maintaining our dedication to providing both consumer and shareholder value."
About 1.7 million shares of LiveDeal were traded by 10:21 a.m. Friday, above the company's average trading volume of about 192,000 shares a day.
TheStreet Ratings team rates LIVEDEAL INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate LIVEDEAL INC (LIVE) 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 disappointing return on equity, generally disappointing historical performance in the stock itself and deteriorating net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, LIVEDEAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
- LIVE has underperformed the S&P 500 Index, declining 20.06% 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 change in net income from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Internet Software & Services industry average. The net income has decreased by 12.3% when compared to the same quarter one year ago, dropping from -$0.98 million to -$1.10 million.
- 45.38% is the gross profit margin for LIVEDEAL INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, LIVE's net profit margin of -25.70% significantly underperformed when compared to the industry average.
- LIVEDEAL INC reported flat earnings per share in the most recent quarter. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, LIVEDEAL INC continued to lose money by earning -$0.34 versus -$0.66 in the prior year.
- You can view the full analysis from the report here: LIVE Ratings Report