Palomar Medical Technologies Inc. Stock Downgraded (PMTI)
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- 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 Health Care Equipment & Supplies industry. The net income has significantly decreased by 130.6% when compared to the same quarter one year ago, falling from $15.26 million to -$4.68 million.
- 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 Health Care Equipment & Supplies industry and the overall market, PALOMAR MED TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- PALOMAR MED TECHNOLOGIES INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, PALOMAR MED TECHNOLOGIES INC turned its bottom line around by earning $0.40 versus -$0.48 in the prior year. For the next year, the market is expecting a contraction of 162.5% in earnings (-$0.25 versus $0.40).
- 36.70% is the gross profit margin for PALOMAR MED TECHNOLOGIES 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, PMTI's net profit margin of -25.30% significantly underperformed when compared to the industry average.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
-- Written by a member of TheStreet Ratings Staff
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