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 deteriorating net income, disappointing return on equity and weak operating cash flow. 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 Pharmaceuticals industry. The net income has significantly decreased by 269.4% when compared to the same quarter one year ago, falling from $4.56 million to -$7.72 million.
- 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 Pharmaceuticals industry and the overall market, CARDIOME PHARMA CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to -$8.02 million or 18.54% when compared to the same quarter last year. Despite a decrease in cash flow CARDIOME PHARMA CORP is still fairing well by exceeding its industry average cash flow growth rate of -30.35%.
- CRME, with its very weak revenue results, has greatly underperformed against the industry average of 10.6%. Since the same quarter one year prior, revenues plummeted by 96.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- 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.