NEW YORK (TheStreet) -- Shares of Exact Sciences Corp. (EXAS - Get Report) are up 5.30% to $13.60 after the molecular diagnostics company announced the pricing of an underwritten public offering of 10,000,000 shares of its common stock at a price of $12.75 per share to the public.
The net proceeds to Exact from the offering are expected to be about $119.7 million.
The offering is expected to close on or about April 9, 2014.
TheStreet Ratings team rates EXACT SCIENCES CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXACT SCIENCES CORP (EXAS) 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 area that we feel has been the company's primary weakness has been its feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, EXACT SCIENCES CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- EXACT SCIENCES CORP has improved earnings per share by 22.7% 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, EXACT SCIENCES CORP continued to lose money by earning -$0.69 versus -$0.88 in the prior year. For the next year, the market is expecting a contraction of 7.2% in earnings (-$0.74 versus -$0.69).
- Along with the stagnant revenue growth, the company underperformed against the industry average of 14.9%. Since the same quarter one year prior, revenues have remained constant. The stagnant revenue growth has not kept the company from increasing earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the Biotechnology industry average, but is less than that of the S&P 500. The net income increased by 12.9% when compared to the same quarter one year prior, going from -$13.99 million to -$12.19 million.
- Net operating cash flow has slightly increased to -$9.59 million or 7.47% when compared to the same quarter last year. Despite an increase in cash flow of 7.47%, EXACT SCIENCES CORP is still growing at a significantly lower rate than the industry average of 64.51%.
- You can view the full analysis from the report here: EXAS Ratings Report