NEW YORK (
-- Transcept Pharmaceuticals
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year and notable return on equity. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.
Highlights from the ratings report include:
- The change in net income from the same quarter one year ago has exceeded that of the Biotechnology industry average, but is less than that of the S&P 500. The net income has decreased by 5.3% when compared to the same quarter one year ago, dropping from -$1.84 million to -$1.94 million.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Biotechnology industry and the overall market, TRANSCEPT PHARMACEUTICALS's return on equity significantly trails that of both the industry average and the S&P 500.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- Despite the stagnant revenue growth, the company outperformed against the industry average of 6.9%. Since the same quarter one year prior, revenues have remained constant. Both the company's revenue growth and earnings per share have remained constant.
- TRANSCEPT PHARMACEUTICALS reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TRANSCEPT PHARMACEUTICALS continued to lose money by earning -$0.70 versus -$1.66 in the prior year. This year, the market expects an improvement in earnings ($0.89 versus -$0.70).
Transcept Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on the development and commercialization of proprietary products that address therapeutic needs in neuroscience. Transcept has a market cap of $134.7 million and is part of the
industry. Shares are up 38.9% year to date as of the close of trading on Friday.
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