Amylin Pharmaceuticals Inc Stock Downgraded (AMLN)
Amylin Pharmaceuticals (Nasdaq:AMLN) has been downgraded by TheStreet Ratings from from a hold to sell.
NEW YORK (
)
(Nasdaq:
) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and feeble growth in its earnings per share.
Highlights from the ratings report include:
- 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 Biotechnology industry. The net income has significantly decreased by 2305.8% when compared to the same quarter one year ago, falling from -$19.18 million to -$461.47 million.
- AMYLIN PHARMACEUTICALS 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, AMYLIN PHARMACEUTICALS INC reported poor results of -$3.72 versus -$1.06 in the prior year. This year, the market expects an improvement in earnings (-$1.30 versus -$3.72).
- AMLN, with its decline in revenue, slightly underperformed the industry average of 2.8%. Since the same quarter one year prior, revenues slightly dropped by 5.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Compared to where it was a year ago, the stock is now trading at a higher level, and has traded in line with 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.
- The gross profit margin for AMYLIN PHARMACEUTICALS INC is currently very high, coming in at 72.80%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -279.80% is in-line with the industry average.
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Amylin Pharmaceuticals, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of drug candidates for the treatment of diabetes, obesity, and other diseases. Amylin has a market cap of $1.67 billion and is part of the
sector and
industry. Shares are up 48.4% year to date as of the close of trading on Wednesday.
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-- Written by a member of TheStreet Ratings Staff
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