NEW YORK ( TheStreet) -- Progenics Pharmaceuticals (Nasdaq: PGNX) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
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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 Biotechnology industry. The net income has significantly decreased by 119.3% when compared to the same quarter one year ago, falling from $55.49 million to -$10.72 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, PROGENICS PHARMACEUTICAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 25.31%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 119.51% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- PROGENICS PHARMACEUTICAL INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, PROGENICS PHARMACEUTICAL INC turned its bottom line around by earning $0.29 versus -$2.14 in the prior year. For the next year, the market is expecting a contraction of 158.6% in earnings (-$0.17 versus $0.29).
- PGNX, with its very weak revenue results, has greatly underperformed against the industry average of 7.5%. Since the same quarter one year prior, revenues plummeted by 97.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
-- Written by a member of TheStreet Ratings Staff