Why Uroplasty (UPI) Hit A Two-Year High Today

NEW YORK (TheStreet) -- Uroplasty  (UPI) soared to a two-year high of $5.40 on Friday after the company reported its third-quarter results.

The company reported revenue of $6.4 million, up 14% from the same period one year earlier. Domestic sales of the company's Urgent PC Neuromodulation System grew 19% to $3.2 million, up from $2.7 million in the same quarter one year earlier. Domestic sales of Macroplastique grew 11% to $1.5 million, while net sales outside of the U.S. grew 11% to $1.6 million.

"Successful execution of the sales strategies we implemented earlier this fiscal year drove our continued sequential and year-over-year improvement," said President and CEO Rob Kill in a company statement. "We are encouraged with the growth results generated to date for U.S. Urgent PC sales and expect recent trends to continue during the fourth quarter.  Our sales force is gaining momentum following our investment in ongoing training during the third quarter and, as a result, we are forecasting 25-30% year-over-year revenue growth for Urgent PC in the U.S. for the fourth quarter of fiscal 2014."

The stock had a volume of nearly 2 million just before the close of the trading day, well above its average of 45,808.

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Separately, TheStreet Ratings team rates UROPLASTY INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate UROPLASTY INC (UPI) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • 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 201.3% when compared to the same quarter one year ago, falling from -$0.64 million to -$1.93 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 Health Care Equipment & Supplies industry and the overall market, UROPLASTY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$1.56 million or 720.00% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • UROPLASTY INC has experienced 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, UROPLASTY INC continued to lose money by earning -$0.16 versus -$0.20 in the prior year. For the next year, the market is expecting a contraction of 50.0% in earnings (-$0.24 versus -$0.16).
  • The gross profit margin for UROPLASTY INC is currently very high, coming in at 86.50%. Regardless of UPI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, UPI's net profit margin of -32.25% significantly underperformed when compared to the industry average.
  • You can view the full analysis from the report here: UPI Ratings Report

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