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NEW YORK (
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.
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Highlights from the ratings report include:
- ORASURE TECHNOLOGIES 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. This trend suggests that the performance of the business is improving. During the past fiscal year, ORASURE TECHNOLOGIES INC continued to lose money by earning -$0.20 versus -$0.29 in the prior year. This year, the market expects an improvement in earnings (-$0.15 versus -$0.20).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 147.8% when compared to the same quarter one year prior, rising from -$5.29 million to $2.53 million.
- The gross profit margin for ORASURE TECHNOLOGIES INC is rather high; currently it is at 66.61%. 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 9.57% trails the industry average.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, ORASURE TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$2.73 million or 70.13% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
OraSure Technologies, Inc., together with its subsidiaries, develops, manufactures, markets, and sells oral fluid diagnostic products and specimen collection devices using its proprietary oral fluid technologies. OraSure has a market cap of $441.5 million and is part of the health care sector and health services industry. Shares are up 25.4% year to date as of the close of trading on Monday.
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