Why Amyris (AMRS) Shares Are Jumping Today

NEW YORK (TheStreet) -- Amyris (AMRS) was gaining 19.3% to $4.45 Tuesday following the release of a renewable fuel study from the United States Maritime Administration.

In the report MARAD said is finished tests of renewable biofuel technology on the training ship State of Michigan. The test compared the operational, vibration, and air emission difference between regular ultralow sulfur diesel fuel and a 76/33 mix of ULSD and Amyris Renewable Diesel fuel. The administration found that Amyris' fuel reduced air emissions without significantly impacting engine performance.

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

"We rate AMYRIS INC (AMRS) a SELL. This is driven by a number of negative factors, 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. Among the areas we feel are negative, one of the most important has been generally deteriorating net income."

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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 220.6% when compared to the same quarter one year ago, falling from -$43.49 million to -$139.42 million.
  • 49.78% is the gross profit margin for AMYRIS INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, AMRS's net profit margin of -905.51% significantly underperformed when compared to the industry average.
  • Compared to where it was a year ago, the stock is now trading at a higher level, and has traded in line with the S&P 500. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • AMYRIS 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. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AMYRIS INC continued to lose money by earning -$3.10 versus -$3.75 in the prior year. This year, the market expects an improvement in earnings (-$0.84 versus -$3.10).
  • AMRS's very impressive revenue growth greatly exceeded the industry average of 7.9%. Since the same quarter one year prior, revenues leaped by 163.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • You can view the full analysis from the report here: AMRS Ratings Report

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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.

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