NEW YORK (
) 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, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- QLT INC's earnings per share declined by 23.5% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, QLT INC reported poor results of -$0.60 versus -$0.35 in the prior year.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Biotechnology industry average. The net income has decreased by 20.2% when compared to the same quarter one year ago, dropping from -$8.55 million to -$10.28 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Biotechnology industry and the overall market, QLT INC's return on equity has significantly outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, QLTI has underperformed the S&P 500 Index, declining 23.95% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The gross profit margin for QLT INC is currently very high, coming in at 84.80%. Regardless of QLTI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, QLTI's net profit margin of -114.30% significantly underperformed when compared to the industry average.
QLT Inc., a biotechnology company, engages in the development and commercialization of ocular products that address the unmet medical needs of patients and clinicians. QLT has a market cap of $333.2 million and is part of the
industry. Shares are down 10% year to date as of the close of trading on Friday.
You can view the full
or get investment ideas from our
-- Written by a member of TheStreet Ratings Staff