NEW YORK (
-- Caliper Life
) 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, disappointing return on equity, weak operating cash flow 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 Life Sciences Tools & Services industry. The net income has significantly decreased by 135.1% when compared to the same quarter one year ago, falling from $9.24 million to -$3.24 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Life Sciences Tools & Services industry and the overall market, CALIPER LIFE SCIENCES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has declined marginally to -$0.85 million or 5.32% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- CALIPER LIFE SCIENCES 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. 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, CALIPER LIFE SCIENCES INC turned its bottom line around by earning $0.08 versus -$0.18 in the prior year. For the next year, the market is expecting a contraction of 50.0% in earnings ($0.04 versus $0.08).
- The gross profit margin for CALIPER LIFE SCIENCES INC is rather high; currently it is at 54.20%. 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 -8.40% is in-line with the industry average.
Caliper Life Sciences, Inc. develops and sells life sciences products and services primarily to pharmaceutical, biotechnology, and diagnostics companies, and government and other not-for-profit research institutions in the United States, Europe, and Asia. Caliper Life has a market cap of $368.7 million and is part of the
industry. Shares are up 5.2% year to date as of the close of trading on Friday.
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