NEW YORK ( TheStreet) -- Cardiome Pharma Corp (Nasdaq: CRME) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and deteriorating net income. Highlights from the ratings report include:
- CARDIOME PHARMA CORP 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 not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, CARDIOME PHARMA CORP turned its bottom line around by earning $0.58 versus -$0.02 in the prior year.
- CRME, with its very weak revenue results, has greatly underperformed against the industry average of 0.5%. Since the same quarter one year prior, revenues plummeted by 98.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- 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 Pharmaceuticals industry. The net income has significantly decreased by 145.9% when compared to the same quarter one year ago, falling from $15.47 million to -$7.10 million.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 37.31%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 146.15% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.