NEW YORK (TheStreet) -- Opko Health (OPK) shares are up 5.87% to $17.14 in early market trading on Monday as the company continues to gain following its $1.47 billion all stock acquisition of Bio-Reference Laboratories (BRLI).
Bio-Reference shareholders will receive 2.75 shares of Opko for every share of Bio-Reference they own as part of the all stock deal that is expected to be completed in the second half of this year.
Bio-Reference Labs reported its second quarter earnings results today with earnings of 38 cents per share, short of the 42 cents per share the company reported during the same period last year, and below analysts' consensus 43 cent per share guidance for this period.
Revenue for the quarter increased 11.2% year over year to $224 million, also missing analysts' consensus $227.33 million forecast.
TheStreet Ratings team rates OPKO HEALTH INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate OPKO HEALTH INC (OPK) 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 revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: OPK Ratings Report