Amylin Pharmaceuticals Inc Stock Upgraded (AMLN)
NEW YORK (
)
(Nasdaq:
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and generally poor debt management.
Highlights from the ratings report include:
- AMLN's revenue growth has slightly outpaced the industry average of 2.4%. Since the same quarter one year prior, revenues rose by 12.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- AMYLIN PHARMACEUTICALS INC reported significant earnings per share improvement 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 two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, AMYLIN PHARMACEUTICALS INC continued to lose money by earning -$1.06 versus -$1.32 in the prior year. This year, the market expects an improvement in earnings (-$0.75 versus -$1.06).
- The gross profit margin for AMYLIN PHARMACEUTICALS INC is rather high; currently it is at 66.30%. 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 -7.50% is in-line with the industry average.
- In its most recent trading session, AMLN has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The debt-to-equity ratio is very high at 2.09 and currently higher than the industry average, implying that there is very poor management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, AMLN has managed to keep a strong quick ratio of 2.18, which demonstrates the ability to cover short-term cash needs.
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 36.5% year to date as of the close of trading on Thursday.
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