Why Microvision (MVIS) Stock Is Down Today

NEW YORK (TheStreet) -- Shares of Microvision  (MVIS) stock are down 14.05% to 2.05 following yesterday's 18% point surge.

This correction comes a day after the image projection company announced an agreement to provide UPS  (UPS) with hand-held devices powered by its PicoP minature projection technology.

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TheStreet Ratings team rates MICROVISION INC as a Sell with a ratings score of E+. TheStreet Ratings Team has this to say about their recommendation:

"We rate MICROVISION INC (MVIS) a SELL. This is based on a variety of negative investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The area that we feel has been the company's primary weakness has been its unimpressive growth in net income."

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

  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Electronic Equipment, Instruments & Components industry average. The net income increased by 4.6% when compared to the same quarter one year prior, going from -$3.85 million to -$3.67 million.
  • MVIS, with its very weak revenue results, has greatly underperformed against the industry average of 2.0%. Since the same quarter one year prior, revenues plummeted by 63.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has slightly increased to -$3.65 million or 7.26% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -8.68%.
  • Investors have driven up the company's shares by 25.47% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the future course of this stock, we feel that the risks involved in investing in MVIS do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • MICROVISION INC has improved earnings per share by 13.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, MICROVISION INC continued to lose money by earning -$1.15 versus -$2.64 in the prior year. This year, the market expects an improvement in earnings (-$0.40 versus -$1.15).
  • You can view the full analysis from the report here: MVIS Ratings Report
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