NEW YORK (
-- AVEO Pharmaceuticals
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.
Highlights from the ratings report include:
- AVEO PHARMACEUTICALS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, AVEO PHARMACEUTICALS INC reported poor results of -$1.89 versus -$0.36 in the prior year. For the next year, the market is expecting a contraction of 23.8% in earnings (-$2.34 versus -$1.89).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 693.7% when compared to the same quarter one year prior, rising from -$14.38 million to $85.37 million.
- AVEO's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 4.15, which clearly demonstrates the ability to cover short-term cash needs.
- AVEO's very impressive revenue growth greatly exceeded the industry average of 5.9%. Since the same quarter one year prior, revenues leaped by 1128.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Compared to other companies in the Biotechnology industry and the overall market, AVEO PHARMACEUTICALS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
AVEO Pharmaceuticals, Inc., a biopharmaceutical company, engages in the discovery and development of cancer therapeutics. AVEO has a market cap of $493 million and is part of the
industry. Shares are up 8.3% year to date as of the close of trading on Thursday.
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