NEW YORK ( TheStreet) -- Siga Technologies (Nasdaq: SIGA) has been downgraded by TheStreet Ratings from hold to sell. Among the areas we feel are negative, one of the most important has been weak operating cash flow. Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the Biotechnology industry average, but is less than that of the S&P 500. The net income increased by 4.8% when compared to the same quarter one year prior, going from -$4.94 million to -$4.70 million.
- SIGA TECHNOLOGIES INC has improved earnings per share by 18.2% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. However, the consensus estimates suggest that there will be an upward trend in the coming year. During the past fiscal year, SIGA TECHNOLOGIES INC reported poor results of -$0.62 versus -$0.61 in the prior year. This year, the market expects an improvement in earnings ($0.03 versus -$0.62).
- SIGA, with its very weak revenue results, has greatly underperformed against the industry average of 7.3%. Since the same quarter one year prior, revenues plummeted by 66.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- 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, SIGA TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to -$4.31 million or 35.16% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, SIGA TECHNOLOGIES INC has marginally lower results.