NEW YORK (TheStreet) -- Techne
(TECH - Get Report) shares are up 5.4% to $88.41 on Monday following the release of the company's 2014 third quarter earnings results.
The biotech company reported adjusted quarterly net income of $34.7 million, or 94 cents per share, beating analysts estimates by 5 cents.
Net sales increased 18% to $95.6 million from the same period a year ago, beating analysts estimates of $92.5 million.
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TheStreet Ratings team rates TECHNE CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate TECHNE CORP (TECH) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, TECH's share price has jumped by 34.15%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TECH should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Despite its growing revenue, the company underperformed as compared with the industry average of 16.1%. Since the same quarter one year prior, revenues rose by 11.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- TECH 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. Along with this, the company maintains a quick ratio of 10.28, which clearly demonstrates the ability to cover short-term cash needs.
- TECHNE CORP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TECHNE CORP increased its bottom line by earning $3.06 versus $3.04 in the prior year. This year, the market expects an improvement in earnings ($3.32 versus $3.06).
- You can view the full analysis from the report here: TECH Ratings Report