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) -- OraSure Technologies (Nasdaq: OSUR) has been downgraded by TheStreet Ratings from hold to sell. The area that we feel has been the company's primary weakness has been its feeble growth in its earnings per share.
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- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, ORASURE TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has remained constant at -$7.67 million with no significant change when compared to the same quarter last year. This quarter, ORASURE TECHNOLOGIES INC's cash flow growth rate has remained relatively unchanged and is slightly below the industry average.
- ORASURE TECHNOLOGIES INC has improved earnings per share by 44.4% 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 year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, ORASURE TECHNOLOGIES INC continued to lose money by earning -$0.20 versus -$0.29 in the prior year. For the next year, the market is expecting a contraction of 25.0% in earnings (-$0.25 versus -$0.20).
- The gross profit margin for ORASURE TECHNOLOGIES INC is rather high; currently it is at 65.71%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -23.92% is in-line with the industry average.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Health Care Equipment & Supplies industry average. The net income increased by 44.9% when compared to the same quarter one year prior, rising from -$10.23 million to -$5.63 million.