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) -- BioTelemetry (Nasdaq: BEAT) 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 weak operating cash flow.
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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 Health Care Providers & Services industry. The net income has significantly decreased by 97.5% when compared to the same quarter one year ago, falling from -$2.09 million to -$4.12 million.
- Net operating cash flow has significantly decreased to -$2.06 million or 224.32% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Health Care Providers & Services industry and the overall market, BIOTELEMETRY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for BIOTELEMETRY INC is rather high; currently it is at 63.80%. Regardless of BEAT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BEAT's net profit margin of -11.09% significantly underperformed when compared to the industry average.
- BIOTELEMETRY 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, BIOTELEMETRY INC continued to lose money by earning -$0.29 versus -$0.48 in the prior year. This year, the market expects an improvement in earnings (-$0.14 versus -$0.29).