NEW YORK ( TheStreet) -- PDL BioPharma (Nasdaq: PDLI) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the company's revenue growth has not been good. Highlights from the ratings report include:
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- The net income growth from the same quarter one year ago has significantly exceeded that of the Biotechnology industry average, but is less than that of the S&P 500. The net income increased by 14.3% when compared to the same quarter one year prior, going from $40.19 million to $45.92 million.
- PDL BIOPHARMA INC has improved earnings per share by 16.7% 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, PDL BIOPHARMA INC reported lower earnings of $0.51 versus $1.16 in the prior year. This year, the market expects an improvement in earnings ($1.16 versus $0.51).
- PDLI, with its decline in revenue, slightly underperformed the industry average of 2.6%. Since the same quarter one year prior, revenues slightly dropped by 3.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.