NEW YORK ( TheStreet) -- Antares Pharma (Nasdaq: ATRS) has been downgraded by TheStreet Ratings from hold to sell. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time.
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- 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 Health Care Equipment & Supplies industry. The net income has significantly decreased by 80.6% when compared to the same quarter one year ago, falling from -$1.55 million to -$2.81 million.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, ANTARES PHARMA INC's return on equity significantly trails that of both the industry average and the S&P 500.
- 44.10% is the gross profit margin for ANTARES PHARMA INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, ATRS's net profit margin of -62.10% significantly underperformed when compared to the industry average.
- ANTARES PHARMA INC's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. 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, ANTARES PHARMA INC continued to lose money by earning -$0.05 versus -$0.08 in the prior year. This year, the market expects an improvement in earnings (-$0.04 versus -$0.05).
- Compared to its closing price of one year ago, ATRS's share price has jumped by 125.55%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in ATRS do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
-- Written by a member of TheStreet Ratings Staff