Spectranetics Corporation Stock Upgraded (SPNC)

NEW YORK ( TheStreet) -- Spectranetics Corporation (Nasdaq: SPNC) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, solid stock price performance, expanding profit margins and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 4.4%. Since the same quarter one year prior, revenues slightly increased by 9.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 107.8% when compared to the same quarter one year prior, rising from -$0.15 million to $0.01 million.
  • SPECTRANETICS CORP has shown no change in earnings for its most recently reported quarter when compared with the same quarter a year earlier. 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, SPECTRANETICS CORP turned its bottom line around by earning $0.03 versus -$0.39 in the prior year. This year, the market expects an improvement in earnings ($0.07 versus $0.03).
  • This stock has managed to rise its share value by 83.30% over the past twelve months. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • The gross profit margin for SPECTRANETICS CORP is currently very high, coming in at 73.00%. Regardless of SPNC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SPNC's net profit margin of 0.00% is significantly lower than the same period one year prior.
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The Spectranetics Corporation designs, manufactures, and markets single use medical devices used in minimally invasive surgical procedures within the cardiovascular system in conjunction with its proprietary excimer laser system, the CVX-300. The company has a P/E ratio of 526.5, above the average health services industry P/E ratio of 351 and above the S&P 500 P/E ratio of 17.7. Spectranetics has a market cap of $359.8 million and is part of the health care sector and health services industry. Shares are up 46% year to date as of the close of trading on Friday.

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