Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. NEW YORK ( TheStreet) -- Astrotech Corporation (Nasdaq: ASTC) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and poor profit margins.
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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 Aerospace & Defense industry. The net income has significantly decreased by 215.3% when compared to the same quarter one year ago, falling from -$0.81 million to -$2.55 million.
- The gross profit margin for ASTROTECH CORP is rather low; currently it is at 17.02%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -100.63% is significantly below that of the industry average.
- 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 Aerospace & Defense industry and the overall market, ASTROTECH CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Compared to its closing price of one year ago, ASTC's share price has jumped by 218.57%, exceeding the performance of the broader market during that same time frame. 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.
- ASTROTECH CORP 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 not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, ASTROTECH CORP continued to lose money by earning -$0.01 versus -$0.16 in the prior year.