- EXFO has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, EXFO has a quick ratio of 1.82, which demonstrates the ability of the company to cover short-term liquidity needs.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 10.0%. Since the same quarter one year prior, revenues slightly dropped by 9.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- EXFO INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. However, the consensus estimates suggest that there will be an upward trend in the coming year. During the past fiscal year, EXFO INC's EPS of $0.02 remained unchanged from the prior years' EPS of $0.02. This year, the market expects an improvement in earnings ($0.16 versus $0.02).
- 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 Communications Equipment industry. The net income has significantly decreased by 66.2% when compared to the same quarter one year ago, falling from $1.67 million to $0.56 million.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 43.61%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 66.66% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, EXFO is still more expensive than most of the other companies in its industry.
All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 242 points (1.4%) at 17,615 as of Monday, Aug. 10, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,351 issues advancing vs. 737 declining with 111 unchanged. The Technology sector as a whole closed the day up 1.4% versus the S&P 500, which was up 1.3%. Top gainers within the Technology sector included ModSys International ( MDSY), up 34.8%, Glowpoint ( GLOW), up 4.1%, Nortech Systems ( NSYS), up 6.4%, ATRM Holdings ( ATRM), up 3.2% and EXFO ( EXFO), up 2.7%. TheStreet Ratings Group would like to highlight 3 stocks pushing the sector higher today: EXFO ( EXFO) is one of the companies that pushed the Technology sector higher today. EXFO was up $0.07 (2.7%) to $2.65 on heavy volume. Throughout the day, 42,370 shares of EXFO exchanged hands as compared to its average daily volume of 8,200 shares. The stock ranged in a price between $2.58-$2.66 after having opened the day at $2.60 as compared to the previous trading day's close of $2.58. EXFO Inc. designs, manufactures, and markets test, service assurance, and quality of experience solutions for wireline and wireless network operators and equipment manufacturers in the telecommunications industry worldwide. EXFO has a market cap of $82.3 million and is part of the telecommunications industry. Shares are down 25.2% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate EXFO a buy, no analysts rate it a sell, and 2 rate it a hold. EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE. TheStreet Ratings rates EXFO as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow. Highlights from TheStreet Ratings analysis on EXFO go as follows: