NEW YORK ( TheStreet) -- BG Medicine (Nasdaq: BGMD) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share and deteriorating net income. Highlights from the ratings report include:
- BGMD's very impressive revenue growth greatly exceeded the industry average of 10.4%. Since the same quarter one year prior, revenues leaped by 90.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- BGMD has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.72, which clearly demonstrates the ability to cover short-term cash needs.
- Compared to other companies in the Life Sciences Tools & Services industry and the overall market, BG MEDICINE INC's return on equity significantly trails that of both the industry average and the S&P 500.
- BG MEDICINE INC's earnings per share declined by 27.8% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, BG MEDICINE INC reported poor results of -$0.90 versus -$0.18 in the prior year. For the next year, the market is expecting a contraction of 29.4% in earnings (-$1.17 versus -$0.90).
- 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 Life Sciences Tools & Services industry. The net income has significantly decreased by 42.5% when compared to the same quarter one year ago, falling from -$3.32 million to -$4.73 million.
-- Written by a member of TheStreet RatingsStaff