NEW YORK (TheStreet) -- Shares of NPS Pharmaceuticals Inc. (NPSP) are lower by -7.54% to $25.00 after the company cut its 2014 forecast and now sees 2014 sales of $100 million to $110 million, down from the previous forecast of $110 million to $120 million.
For the 2014 first quarter, NPS reported a net loss of $6.6 million or 6 cents per diluted share, compared to a net loss of $7.8 million or 9 cents per diluted share for the same period last year.
Revenues were comprised of net product sales for Gattex and royalty revenues. Net sales of Gattex were $17.9 million for the first quarter of 2014, versus $0.7 million for the same period last year.
Royalty revenues were $26.2 million for the first quarter of 2014 compared to $24.8 million for the same period last year
TheStreet Ratings team rates NPS PHARMACEUTICALS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate NPS PHARMACEUTICALS INC (NPSP) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including poor profit margins and generally higher debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- NPSP's very impressive revenue growth greatly exceeded the industry average of 28.0%. Since the same quarter one year prior, revenues leaped by 100.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 150.00% and other important driving factors, this stock has surged by 102.61% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- Compared to other companies in the Biotechnology industry and the overall market, NPS PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The debt-to-equity ratio of 1.42 is relatively high when compared with the industry average, suggesting a need for better debt level management. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 3.80, which shows the ability to cover short-term cash needs.
- The gross profit margin for NPS PHARMACEUTICALS INC is rather low; currently it is at 20.84%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, NPSP's net profit margin of 14.26% is significantly lower than the industry average.
- You can view the full analysis from the report here: NPSP Ratings Report