NEW YORK ( TheStreet) -- Meridian Bioscience (Nasdaq: VIVO) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share and increase in net income. However, as a counter to these strengths, we also find weaknesses including premium valuation and relatively poor performance when compared with the S&P 500 during the past year.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 6.7%. Since the same quarter one year prior, revenues rose by 18.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • MERIDIAN BIOSCIENCE INC has improved earnings per share by 6.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MERIDIAN BIOSCIENCE INC reported lower earnings of $0.66 versus $0.81 in the prior year. This year, the market expects an improvement in earnings ($0.70 versus $0.66).
  • In its most recent trading session, VIVO has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.

Meridian Bioscience, Inc. operates as an integrated life science company. The company primarily engages in the development, manufacture, sale, and distribution of diagnostic test kits primarily for respiratory, gastrointestinal, viral, and parasitic infectious diseases. The company has a P/E ratio of 30, above the average drugs industry P/E ratio of 29.5 and above the S&P 500 P/E ratio of 17.7. Meridian Bioscience has a market cap of $762.7 million and is part of the health care sector and drugs industry. Shares are down 18.2% year to date as of the close of trading on Monday.

You can view the full Meridian Bioscience Ratings Report or get investment ideas from our investment research center.
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