Spectrum Pharmaceuticals Inc Stock Downgraded (SPPI)

NEW YORK ( TheStreet) -- Spectrum Pharmaceuticals (Nasdaq: SPPI) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from the ratings report include:
  • SPPI's very impressive revenue growth greatly exceeded the industry average of 3.0%. Since the same quarter one year prior, revenues leaped by 56.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, SPECTRUM PHARMACEUTICALS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 86.5% when compared to the same quarter one year prior, rising from $4.44 million to $8.28 million.
  • The gross profit margin for SPECTRUM PHARMACEUTICALS INC is currently very high, coming in at 78.80%. Regardless of SPPI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 15.60% trails the industry average.
.

Spectrum Pharmaceuticals, Inc., a commercial-stage biotechnology company, primarily focuses on oncology and hematology. The company engages in acquiring, developing, and commercializing a broad and diverse pipeline of late-stage clinical and commercial products. The company has a P/E ratio of 15.1, below the average drugs industry P/E ratio of 19.7 and below the S&P 500 P/E ratio of 17.7. Spectrum has a market cap of $880.1 million and is part of the health care sector and drugs industry. Shares are down 12.3% year to date as of the close of trading on Friday.

You can view the full Spectrum Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet Ratings Staff
null

If you liked this article you might like

Pacific Biosciences Shares Down After Third-Quarter Results -- Biotech Movers

Pacific Biosciences Shares Down After Third-Quarter Results -- Biotech Movers

Spectrum Shares Surge on Data for Lung Cancer Drug -- Biotech Movers

Spectrum Shares Surge on Data for Lung Cancer Drug -- Biotech Movers

Biotech Movers: Myriad Genetics, Spectrum Pharmaceuticals, Array BioPharma

Biotech Movers: Myriad Genetics, Spectrum Pharmaceuticals, Array BioPharma

Merger Buzz Drives Akorn to Top of Health Chart in April

Merger Buzz Drives Akorn to Top of Health Chart in April

Shortened FDA Advisory Panel Is Bad Omen for Puma Bio's Controversial Breast Cancer Drug

Shortened FDA Advisory Panel Is Bad Omen for Puma Bio's Controversial Breast Cancer Drug