NEW YORK ( TheStreet) -- OraSure Technologies (Nasdaq: OSUR) 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 and feeble growth in its earnings per share. Highlights from the ratings report include:
- 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 Health Care Equipment & Supplies industry. The net income has significantly decreased by 340.9% when compared to the same quarter one year ago, falling from -$0.55 million to -$2.44 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, ORASURE TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- ORASURE TECHNOLOGIES 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, ORASURE TECHNOLOGIES INC continued to lose money by earning -$0.07 versus -$0.17 in the prior year. For the next year, the market is expecting a contraction of 164.3% in earnings (-$0.19 versus -$0.07).
- OSUR, with its decline in revenue, slightly underperformed the industry average of 6.7%. Since the same quarter one year prior, revenues slightly dropped by 0.8%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The gross profit margin for ORASURE TECHNOLOGIES INC is rather high; currently it is at 68.80%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -12.80% is in-line with the industry average.