NEW YORK (
-- BG Medicine
) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share and deteriorating net income.
Highlights from the ratings report include:
- BG MEDICINE INC's earnings per share declined by 27.8% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, BG MEDICINE INC reported poor results of -$0.90 versus -$0.18 in the prior year. For the next year, the market is expecting a contraction of 29.4% in earnings (-$1.17 versus -$0.90).
- 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 Life Sciences Tools & Services industry. The net income has significantly decreased by 42.5% when compared to the same quarter one year ago, falling from -$3.32 million to -$4.73 million.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 33.54%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 27.77% compared to the year-earlier quarter.
- Compared to other companies in the Life Sciences Tools & Services industry and the overall market, BG MEDICINE INC's return on equity significantly trails that of both the industry average and the S&P 500.
- BGMD 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 4.72, which clearly demonstrates the ability to cover short-term cash needs.
BG Medicine, Inc., a life sciences company, engages in the discovery, development, and commercialization of diagnostic tests based on biomarkers in the United States. BG Medicine has a market cap of $119.8 million and is part of the
industry. Shares are up 26.3% year to date as of the close of trading on Friday.
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-- Written by a member of TheStreet Ratings Staff