NEW YORK ( TheStreet) -- Regeneron Pharmaceuticals (Nasdaq: REGN) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity. Highlights from the ratings report include:
- Compared to its closing price of one year ago, REGN's share price has jumped by 224.69%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- REGN, with its decline in revenue, underperformed when compared the industry average of 3.7%. Since the same quarter one year prior, revenues slightly dropped by 8.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- REGENERON PHARMACEUT 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, REGENERON PHARMACEUT reported poor results of -$2.44 versus -$1.27 in the prior year. For the next year, the market is expecting a contraction of 2.0% in earnings (-$2.49 versus -$2.44).
- 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 Biotechnology industry. The net income has significantly decreased by 266.1% when compared to the same quarter one year ago, falling from -$14.60 million to -$53.44 million.
-- Written by a member of TheStreet RatingsStaff