NEW YORK (
-- Optimer Pharmaceuticals
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- The gross profit margin for OPTIMER PHARMACEUTICALS INC is currently very high, coming in at 94.00%. It has increased significantly from the same period last year. Along with this, the net profit margin of 65.10% significantly outperformed against the industry average.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 434.4% when compared to the same quarter one year prior, rising from -$13.50 million to $45.13 million.
- OPTIMER 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 year. We feel that this trend should continue. During the past fiscal year, OPTIMER PHARMACEUTICALS INC continued to lose money by earning -$1.27 versus -$1.29 in the prior year. This year, the market expects an improvement in earnings (-$0.64 versus -$1.27).
- OPTR 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 21.91, which clearly demonstrates the ability to cover short-term cash needs.
- OPTR's very impressive revenue growth greatly exceeded the industry average of 0.9%. Since the same quarter one year prior, revenues leaped by 23225.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
Optimer Pharmaceuticals, Inc., a biopharmaceutical company, focuses on discovering, developing, and commercializing anti-infective products worldwide. It develops products that treat gastrointestinal infections and related diseases. The company has a P/E ratio of 77.7, below the average drugs industry P/E ratio of 82.2 and above the S&P 500 P/E ratio of 17.7. Optimer has a market cap of $648 million and is part of the
industry. Shares are up 23.7% year to date as of the close of trading on Friday.
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