- LIPOSCIENCE 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, LIPOSCIENCE INC swung to a loss, reporting -$0.86 versus $0.08 in the prior year. For the next year, the market is expecting a contraction of 4.7% in earnings (-$0.90 versus -$0.86).
- 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 Biotechnology industry. The net income has significantly decreased by 66.0% when compared to the same quarter one year ago, falling from -$2.44 million to -$4.06 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, LIPOSCIENCE INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 43.33%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 58.82% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The gross profit margin for LIPOSCIENCE INC is currently very high, coming in at 78.82%. Regardless of LPDX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LPDX's net profit margin of -44.84% significantly underperformed when compared to the industry average.
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. Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 30.89 points (-0.2%) at 17,068 as of Tuesday, Sept. 2, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,485 issues advancing vs. 1,589 declining with 141 unchanged. The Health Services industry as a whole closed the day up 0.2% versus the S&P 500, which was down 0.1%. Top gainers within the Health Services industry included SunLink Health Systems ( SSY), up 8.3%, Vision-Sciences ( VSCI), up 3.5%, Daxor ( DXR), up 2.0%, LipoScience ( LPDX), up 8.5% and Lakeland Industries ( LAKE), up 9.0%. TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today: LipoScience ( LPDX) is one of the companies that pushed the Health Services industry higher today. LipoScience was up $0.24 (8.5%) to $3.07 on heavy volume. Throughout the day, 38,046 shares of LipoScience exchanged hands as compared to its average daily volume of 21,300 shares. The stock ranged in a price between $2.80-$3.10 after having opened the day at $2.80 as compared to the previous trading day's close of $2.83. LipoScience, Inc., a clinical diagnostic company, is engaged in the field of personalized diagnostics based on nuclear magnetic resonance (NMR) technology in the United States. LipoScience has a market cap of $43.2 million and is part of the health care sector. Shares are down 33.4% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates LipoScience a buy, no analysts rate it a sell, and 1 rates it a hold. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings rates LipoScience as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself. Highlights from TheStreet Ratings analysis on LPDX go as follows: