BioScrip Inc (NASDAQ:BIOS) Is Still Losing Money

[[tagnumber 0]][[tagnumber 1]]BioScrip Inc (NASDAQ:BIOS) has seen better days on the charts and this is strikingly evident from the recent performance of its stock. Not so long ago, BIOS shares could be sold as high as $8.75 per share. However, this price level has remained out of reach since last September and, judging from the current chart, the situation seems unlikely to chance any time soon. Yet, there are a few things to consider before coming to firm conclusions about the company’s prospects.[[tagnumber 2]] [[tagnumber 0]]First a[[tagnumber 4]]nd foremost, the provider of infusion and home care management solutions has been increasing its revenue for each of the last four fiscal years on record. In 2014, BioScrip raked in $984 million, up 22% from the year prior, 40% from 2012 and 45% in 2011. As much as such a trend is by all means favorable for any company, it does not seem to have done wonders for BioScrip’s net results. On the contrary, BIOS incurred a loss of $70 million in 2013 and $147 million in 2014, both largely due to a considerable increase in production costs. In this respect, a policy aimed at optimizing those expenses could be welcomed by prospective investors.[[tagnumber 2]] [[tagnumber 0]]According to analysts at Nasdaq, the company’s earnings are projected to grow at an average annual rate of 15% over the next few years. If achieved, this would turn the expected loss of $0.37 per share for 2015 into a net profit of $0.42 per share in two years. The key word here is “if” because analysts also had earnings expectations for each of the last four quarters and BIOS actually met none of them. What is more, they say nothing about the short–term prospects of the stock and, right now, BIOS’s market value is exactly 70% away from its 52–week high. Yesterday, BIOS closed trade at $2.69 per share on a volume of 967 thousand. Today, the stock is still falling and, judging from the huge short interest, the majority of investors expect just that. As of July 15, almost twenty million BIOS shares had been sold short without being covered yet. And even though a few insiders seem to have confidence in the stock by purchasing twenty thousand shares over the last twelve months, it would take much higher levels of insider buying to offset the shorters.[[tagnumber 2]] [[tagnumber 0]]Considering that BIOS is currently in the red, it is no wonder that its EPS is way lower than the industry average. Nor is it surprising that the 50– and 200–day moving averages have both been showing a definitive downward trend for quite a while now. Whether this will change or not remains to be seen. The second quarter results call scheduled for Aug. 10 before market open will hint at the stock’s performance in the weeks to come.[[tagnumber 2]]