NEW YORK (
-- Synta Pharmaceuticals
) 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, feeble growth in its earnings per share and weak operating cash flow.
Highlights from the ratings report include:
- SNTA, with its decline in revenue, underperformed when compared the industry average of 3.4%. Since the same quarter one year prior, revenues fell by 13.7%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
- Net operating cash flow has decreased to -$8.21 million or 13.03% when compared to the same quarter last year. Despite a decrease in cash flow of 13.03%, SYNTA PHARMACEUTICALS CORP is in line with the industry average cash flow growth rate of -13.87%.
- SYNTA PHARMACEUTICALS CORP reported flat earnings per share in the most recent quarter. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, SYNTA PHARMACEUTICALS CORP swung to a loss, reporting -$0.92 versus $2.33 in the prior year. For the next year, the market is expecting a contraction of 27.2% in earnings (-$1.17 versus -$0.92).
- 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 Biotechnology industry and the overall market, SYNTA PHARMACEUTICALS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- 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 Biotechnology industry. The net income has significantly decreased by 25.4% when compared to the same quarter one year ago, falling from -$7.04 million to -$8.82 million.
Synta Pharmaceuticals Corp., a biopharmaceutical company, focuses on discovering, developing, and commercializing small molecule drugs to extend and enhance the lives of patients with severe medical conditions, including cancer and chronic inflammatory diseases. Synta has a market cap of $217.6 million and is part of the
industry. Shares are down 14.2% year to date as of the close of trading on Tuesday.
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