Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model NEW YORK ( TheStreet) -- Curis (Nasdaq: CRIS) has been downgraded by TheStreet Ratings from hold to sell. Among the areas we feel are negative, one of the most important has been the company's poor growth in earnings per share.
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- CURIS INC has improved earnings per share by 33.3% in the most recent quarter compared to 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, CURIS INC reported poor results of -$0.13 versus -$0.06 in the prior year. For the next year, the market is expecting a contraction of 7.7% in earnings (-$0.14 versus -$0.13).
- This stock has increased by 34.09% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, CURIS 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 significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 41.2% when compared to the same quarter one year prior, rising from -$4.91 million to -$2.89 million.
- CRIS's very impressive revenue growth greatly exceeded the industry average of 7.5%. Since the same quarter one year prior, revenues leaped by 1010.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
-- Written by a member of TheStreet Ratings Staff