NEW YORK ( TheStreet) -- MAP Pharmaceuticals (Nasdaq: MAPP) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and feeble growth in its earnings per share. Highlights from the ratings report include:
- MAPP has underperformed the S&P 500 Index, declining 11.98% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- MAP PHARMACEUTICALS INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, MAP PHARMACEUTICALS INC continued to lose money by earning -$1.09 versus -$2.00 in the prior year. For the next year, the market is expecting a contraction of 41.7% in earnings (-$1.55 versus -$1.09).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Pharmaceuticals industry and the overall market, MAP PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Pharmaceuticals industry average. The net income increased by 0.9% when compared to the same quarter one year prior, going from -$13.95 million to -$13.82 million.
-- Written by a member of TheStreet Ratings Staff