AVANIR Pharmaceuticals (AVNR) Down In Post-Market Activity

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.

Trade-Ideas LLC identified AVANIR Pharmaceuticals ( AVNR) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified AVANIR Pharmaceuticals as such a stock due to the following factors:

  • AVNR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $185.0 million.
  • AVNR is down 6% today from today's close.

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More details on AVNR:

Avanir Pharmaceuticals, Inc., together with its subsidiaries, is engaged in acquiring, developing, and commercializing novel therapeutic products for the treatment of central nervous system disorders primarily in the United States. Currently there are 3 analysts that rate AVANIR Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for AVANIR Pharmaceuticals has been 4.2 million shares per day over the past 30 days. AVANIR has a market cap of $2.0 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.78 and a short float of 11.7% with 0.93 days to cover. Shares are up 228.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates AVANIR Pharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and deteriorating net income.

Highlights from the ratings report include:
  • Net operating cash flow has decreased to -$16.08 million or 23.91% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The change in net income from the same quarter one year ago has exceeded that of the Pharmaceuticals industry average, but is less than that of the S&P 500. The net income has decreased by 11.2% when compared to the same quarter one year ago, dropping from -$11.42 million to -$12.70 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Pharmaceuticals industry and the overall market, AVANIR PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for AVANIR PHARMACEUTICALS INC is currently very high, coming in at 95.13%. Regardless of AVNR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, AVNR's net profit margin of -44.35% significantly underperformed when compared to the industry average.
  • AVANIR PHARMACEUTICALS INC reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, AVANIR PHARMACEUTICALS INC reported poor results of -$0.53 versus -$0.45 in the prior year. This year, the market expects an improvement in earnings (-$0.30 versus -$0.53).

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