NEW YORK ( TheStreet) -- Immunomedics (Nasdaq: IMMU) 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, weak operating cash flow and feeble growth in its earnings per share. Highlights from the ratings report include:
- IMMU, with its very weak revenue results, has greatly underperformed against the industry average of 5.8%. Since the same quarter one year prior, revenues plummeted by 89.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- IMMUNOMEDICS INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. 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, IMMUNOMEDICS INC increased its bottom line by earning $0.49 versus $0.03 in the prior year. For the next year, the market is expecting a contraction of 163.3% in earnings (-$0.31 versus $0.49).
- Net operating cash flow has significantly decreased to -$6.34 million or 860.62% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- 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, IMMUNOMEDICS INC'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 314.9% when compared to the same quarter one year ago, falling from $3.47 million to -$7.46 million.