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) -- TheStreet.com's stock-rating model upgraded
to "hold." The company develops treatments for genetic diseases.
: Second-quarter revenue increased 29% to $83 million, but net income dropped 66% to $1.3 million and earnings per share fell 75% to 1 cent, hurt by a higher share count. Its operating margin deteriorated from 7% to 5% and its net margin declined from 6% to 2%. The company has ample liquidity, with $200 million of cash, amounting to a high quick ratio of 7.2. But a debt-to-equity ratio of 1.8 indicates excessive leverage.
: BioMarin is down 8% this year, underperforming major U.S. indices. The stock trades at a price-to-earnings ratio of 204, which reflects lofty growth expectations, and doesn't pay dividends.
The model upgraded cable-television provider
: Second-quarter revenue jumped 10% to $1.9 billion, but net income deteriorated 8% to $87 million, or 29 cents. Its operating margin inched past 18% and its net margin dropped below 5%. The company has inadequate liquidity, which is reflected in its quick ratio of 0.5. And $12 billion of debt and negative shareholders' equity indicate excessive leverage.
: Cablevision is up 25% this year, beating the
Dow Jones Industrial Average
S&P 500 Index
. The stock offers a lackluster 1.9% dividend yield.
The model upgraded asset manager
: Second-quarter net income plummeted 52% to $26 million, or 22 cents, as revenue declined 28% to $198 million. Its operating margin dropped from 35% to 23% and its net margin declined from 19% to 13%. Eaton Vance has strong liquidity, with more than $309 million of cash and a quick ratio of 3.3. But a debt-to-equity ratio of 1.7 illustrates its heavy use of debt financing.
: Eaton Vance has increased 40% this year, outpacing major U.S. indices. The stock trades at an expensive price-to-earnings ratio of 27 and offers a lackluster 2.1% dividend yield.
The model upgraded furniture-components-maker
Leggett & Platt
: Second-quarter revenue fell 29% to $757 million as net income dropped 59% to $19 million and earnings per share declined 52% to 12 cents, cushioned by a lower share count. Its operating margin decreased from 8% to 7% and its net margin fell below 3%. The company has a strong balance sheet, with $222 million of cash and a quick ratio of 1.4. A debt-to-equity ratio of 0.5 indicates conservative leverage.
: Leggett & Platt has advanced 17% this year, topping the Dow and S&P 500. The stock trades at an exorbitant price-to-earnings ratio of 47, but offers a 5.7% dividend yield, which is higher than the average for S&P 500 companies.
The model upgraded trucking company
: Second-quarter net income fell 40% to $18 million, or 35 cents, as revenue decreased 30% to $491 million. Its operating margin fell below 7% and its net margin dropped below 4%. Landstar's greatest strength is its financial position. The company holds $115 million of cash reserves, amounting to a quick ratio of 1.7. Its debt-to-equity ratio of 0.3 reflects modest leverage and less than the average for the trucking industry.
: Landstar is down 3% this year, underperforming major U.S. indices. The stock trades at an expensive price-to-earnings ratio of 22 and offers a dividend yield below 1%.
-- Reported by Jake Lynch in Boston