"In order to position the Company to pursue a growth strategy, the Board of Directors has elected to suspend the payment of quarterly dividends at the present time and devote cash flows towards these strategic initiatives that have the potential to accelerate the Company's long-term growth in revenue and earnings," said Female Health president and CEO Karen King.
The stock was down 14.42% to $4.77 at 2:32 p.m. Nearly 1 million shares had changed hands, compared to the average volume of 113,465.
Separately, TheStreet Ratings team rates FEMALE HEALTH CO as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate FEMALE HEALTH CO (FHCO) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income."