Vical Incorporated Stock Downgraded (VICL)
NEW YORK (
)
(Nasdaq:
) has been downgraded by TheStreet Ratings from hold to sell. The area that we feel has been the company's primary weakness has been its feeble growth in its earnings per share.
Highlights from the ratings report include:
- 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 Biotechnology industry and the overall market, VICAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
- VICAL INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, VICAL INC continued to lose money by earning -$0.11 versus -$0.51 in the prior year. For the next year, the market is expecting a contraction of 200.0% in earnings (-$0.33 versus -$0.11).
- The revenue fell significantly faster than the industry average of 2.8%. Since the same quarter one year prior, revenues fell by 33.7%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
- The net income growth 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 increased by 2.1% when compared to the same quarter one year prior, going from -$6.76 million to -$6.61 million.
- Compared to its closing price of one year ago, VICL's share price has jumped by 85.85%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in VICL do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
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Vical Incorporated engages in the research and development of biopharmaceutical products based on its deoxyribonucleic acid (DNA) delivery technologies for the prevention and treatment of serious or life-threatening diseases. Vical has a market cap of $245.8 million and is part of the
sector and
industry. Shares are down 16.6% year to date as of the close of trading on Thursday.
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-- Written by a member of TheStreet Ratings Staff
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