NEW YORK (TheStreet) -- Female Health Company (FHCO) shares continue to drop Tuesday, down -12.8% to $4.17, after announcing that it would suspend quarterly dividend payments in an effort to promote more sustainable earnings and revenue growth.
"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," CEO Karen King said in a statement.
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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."