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With the global recovery gaining traction, most companies are witnessing improving fundamentals and are expected to post sales and EPS growth next year. However, following is a list of 25 small cap companies for which sell side expects sales and EPS to decline in 2012.

Tkr

Company Name

Industry Name

EPS Next Yr Growth (%)

SALES Next Yr Growth (%)

ADC

AGREE REALTY CP

INVESTMENTS

-5.56

-0.67

WHX

WHITING USA TRUS

OIL

-5.07

-8.19

OSIR

OSIRIS THERAPE

BIOTECH

-184.94

-32.77

RELL

RICHARDSON ELECT

SEMICONDUCT

-46.6

-34.97

ARR

ARMOUR RESIDENTI

FINANCE SVCS

-15.54

-18.27

WSTL

WESTELL TECH

OFFC/COM EQ

0

-5.76

HITK

HI-TECH PHARMACA

DRUGS

-24.85

-4.3

MNI

MCCLATCHY CO

COMMUNICAT

-39.73

-3.23

CACB

CASCADE BANCORP

BANKING

-64.37

-33.99

GNK

GENCO SHIPPING

MARITIME

-102.33

-8.74

COCO

CORINTHIAN COLL.

OTH CON SVCS

-53.76

-10.16

DX

DYNEX CAPITAL

INVESTMENTS

-3.94

-4.04

PTIE

PAIN THERA

DRUGS

-50.98

-9.87

RBCAA

REPUB. BANC KY

BANKING

-0.17

-1.3

NBIX

NEUROCRINE BIOSC

BIOTECH

-83.33

-31.4

DEPO

DEPOMED INC

BIOTECH

-52

-6.86

VLCCF

KNIGHTSBRIDGE TK

MARITIME

-3.11

-2.45

HYC

HYPERCOM CORP

OTHER COMP

-2.65

-2.1

AMSC

AMERN SUPERCONDU

ELECTRICAL

-39.28

-7.12

MNTA

MOMENTA PHARMA

BIOTECH

-43.13

-28.52

CMTL

COMTECH TELECOMM

OFFC/COM EQ

-46.77

-31.91

SFI

ISTAR FIN INC

INVESTMENTS

-768.75

-13.52

ANH

ANWORTH MORTGAGE

INVESTMENTS

-5.53

-3.24

VNR

VANGUARD NATURAL

OIL

-7.03

-0.59

DSX

DIANA SHIPPING

MARITIME

-27.79

-9.82

Here are some of the specifics about these companies, including a brief description of their business, growth rates (topline and bottomline) and valuation:

Agree Realty Corporation is a self-administered and self-managed real estate investment trust (REIT). Its EPS forecast for the current year is 1.71 and next year is 1.62. According to consensus estimates, its topline is expected to decline 0.08% current year and 0.67% next year. It is trading at a forward P/E of 13.85. Two analysts cover the company and both are positive and have buy recommendations.

Whiting USA Trust I is a trust formed by Whiting Petroleum Corporation (WLL). The trust was formed to acquire and hold a term net profits interest for the benefit of trust unitholders pursuant to a conveyance to the trust from Whiting Oil and Gas. Its EPS forecast for the current year is 2.96 and next year is 2.81. According to consensus estimates, its topline is expected to grow 9.74 % current year and decline 8.19% next year. It is trading at a forward P/E of 5.98. Three analysts cover the company and all have sell ratings.

Osiris Therapeutics, Inc. is a stem cell therapeutic company. It focuses on developing and marketing products to treat serious medical conditions in the inflammatory, autoimmune, orthopedic and cardiovascular areas. Its EPS forecast for the current year is 0.41 and next year is -0.34. According to consensus estimates, its topline is expected to grow 3.51% current year and decline 32.77% next year. Out of six analysts covering the company, one is positive and has a buy recommendation, three have sell recommendations and two have hold ratings.

Richardson Electronics, Ltd. is a global provider of engineered solutions and a global distributor of electronic components to the radio frequency, wireless and power conversion, electron device, and display systems markets. Its EPS forecast for the current year is 0.52 and next year is 0.28. According to consensus estimates, its topline is expected to decline 47.34% current year and 34.97% next year. It is trading at a forward P/E of 47.86. One analyst covers the company and has a hold rating.

Armour Residential REIT, Inc., formerly Enterprise Acquisition Corp., is focused on investing in agency residential mortgage-backed securities. Armour's residential mortgage-backed securities portfolio consists of hybrid adjustable-rate, adjustable-rate and fixed-rate residential mortgage-backed securities issued or guaranteed by the United States government-chartered entities, including the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Government National Mortgage Administration, a United States Government corporation (Ginnie Mae) (collectively, agency securities). Its EPS forecast for the current year is 1.52 and next year is 1.29. According to consensus estimates, its topline is expected to grow 363.74% current year and decline 18.27% next year. It is trading at a forward P/E of 5.93. Out of three analysts covering the company, two are positive and have buy recommendations and one has hold ratings.

Westell Technologies, Inc. is a holding company that consists of three operating segments: Customer Networking Solutions equipment, Outside Plant Systems equipment -- both segments, collectively, referred to as combined equipment segments or equipment segments -- and ConferencePlus services segment. Its wholly owned subsidiary, Westell, Inc., designs and distributes telecommunications products, which are sold primarily to telephone companies. Its EPS forecast for the current year is 0.23 and next year is 0.23. According to consensus estimates, its topline is expected to grow 4.51% current year and decline 5.76% next year. It is trading at a forward P/E of 16.78. One analyst covers the company and has a buy recommendation.

Hi-Tech Pharmacal Co., Inc. is a specialty manufacturer and marketer of prescription, over-the-counter (OTC) and nutritional products. The company develops, manufactures and markets products in three categories: Generics, prescription brands and OTC brands. Its EPS forecast for the current year is 2.83 and next year is 2.13. According to consensus estimates, its topline is expected to grow 10.41% current year and decline 4.3% next year. It is trading at a forward P/E of 10.02. Out of three analysts covering the company, two are positive and have buy recommendations and one has a sell recommendation.

The McClatchy Company is a hybrid print and online, news and advertising company. The company’s newspapers range from the dailies serving metropolitan areas to non-daily newspapers serving small communities. Its EPS forecast for the current year is 0.37 and next year is 0.23. According to consensus estimates, its topline is expected to decline 4.94% current year and 3.23% next year. It is trading at a forward P/E of 14.52. Four analysts cover the company and all have hold ratings.

Cascade Bancorp is a holding company for Bank of the Cascades ("the bank"). The bank offers full-service community banking through 32 branches in Central Oregon, Southern Oregon, Portland/Salem, Oregon and Boise/Treasure Valley, Idaho. Its EPS forecast for the current year is 0.87 and next year is 0.31. According to consensus estimates, its topline is expected to grow 82.95% current year and decline 33.99% next year. It is trading at a forward P/E of 24.48. Two analysts cover the company and both have sell recommendations.

Genco Shipping & Trading Limited is engaged in transporting iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. Its EPS forecast for the current year is 0.98 and next year is -0.02. According to consensus estimates, its topline is expected to decline 7.99% current year and 8.74% next year. Out of 20 analysts covering the company, four are positive and have buy recommendations, eight have sell recommendations and eight have hold ratings.

Corinthian Colleges, Inc. is a post-secondary education company in the United States and Canada, serving the segment of the population seeking to acquire career-oriented education. Its EPS forecast for the current year is 0.94 and next year is 0.43. According to consensus estimates, its topline is expected to grow 7.67% current year and decline 10.16% next year. It is trading at a forward P/E of 11. Out of 16 analysts covering the company, two are positive and have buy recommendations, five have sell recommendations and nine have hold ratings.

Dynex Capital, Inc. is a REIT that invests in mortgage securities and loans on a leveraged basis. Its EPS forecast for the current year is 1.44 and next year is 1.38. According to consensus estimates, its topline is expected to grow 43.46% current year and decline 4.04% next year. It is trading at a forward P/E of 7.25. Out of five analysts covering the company, three are positive and have buy recommendations and two have hold ratings.

Pain Therapeutics, Inc. is a biopharmaceutical company that develops drugs. The company has four drug candidates in clinical programs, including REMOXY, abuse-resistant hydromorphone, abuse-resistant hydrocodone and a radio-labeled monoclonal antibody to treat metastatic melanoma. Its EPS forecast for the current year is 0.26 and next year is 0.13. According to consensus estimates, its topline is expected to grow 121.44% current year and decline 9.87% next year. It is trading at a forward P/E of 75.31. One analyst covers the company and has a buy recommendation.

Republic Bancorp, Inc. is a bank holding company. Republic is the parent company of Republic Bank & Trust Company and Republic Bank (collectively referred to as "the bank"), Republic Funding Company and Republic Invest Co. The company operates through three business segments: Traditional Banking, Tax Refund Solutions and Mortgage Banking. Its EPS forecast for the current year is 3.82 and next year is 3.81. According to consensus estimates, its topline is expected to grow 11.46% current year and decline 1.3% next year. It is trading at a forward P/E of 5.61. Three analysts cover the company and all have hold ratings.

Neurocrine Biosciences, Inc., incorporated in January 1992, is engaged in developing, discovering and commercializing drugs for the treatment of neurological and endocrine-related diseases and disorders. Its EPS forecast for the current year is 0.57 and next year is 0.1. According to consensus estimates, its topline is expected to grow 133.55% current year and decline 31.4% next year. It is trading at a forward P/E of 83.00. Out of seven analysts covering the company, five are positive and have buy recommendations and two have hold ratings.

Depomed, Inc. is a specialty pharmaceutical company focused on the development and commercialization of differentiated products that are based on oral drug delivery technologies. It has developed two products that have been approved by the Food & Drug Administration and are marketed: GLUMETZA and Proquin XR. Its EPS forecast for the current year is 0.5 and next year is 0.24. According to consensus estimates, its topline is expected to grow 76.63% current year and decline 6.86% next year. It is trading at a forward P/E of 37.00. All three analysts covering the company have buy recommendations.

Knightsbridge Tankers Limited is engaged in the international seaborne transportation of crude oil and dry bulk cargoes. Its EPS forecast for the current year is 1.75 and next year is 1.69. According to consensus estimates, its topline is expected to grow 2.84% current year and decline 2.45% next year. It is trading at a forward P/E of 14.53. Out of six analysts covering the company, one is positive and has a buy recommendation, one has a sell recommendation and four have hold ratings.

Hypercom Corporation is a global provider of electronic payment and transaction solutions and value-added services at the point of transaction. The company designs and sells a variety of electronic transaction terminals, peripheral devices, transaction networking devices, transaction management systems, application software and information delivery services. Its EPS forecast for the current year is 0.47 and next year is 0.46. According to consensus estimates, its topline is expected to grow 8.26% current year and decline 2.1% next year. It is trading at a forward P/E of 25.50. Out of three analysts covering the company, one has a sell recommendation and two have hold ratings.

American Superconductor Corporation is a power technology company offering a range of technologies and solutions spanning the electric power infrastructure from generation to delivery to end use. It also offers a host of smart grid technologies for power grid operators, which integrate renewable energy sources into the power infrastructure. Its EPS forecast for the current year is 1.1 and next year is 0.67. According to consensus estimates, its topline is expected to grow 26.41% current year and decline 7.12% next year. It is trading at a forward P/E of 21.60. Out of 15 analysts covering the company, nine are positive and have buy recommendations and six have hold ratings.

Momenta Pharmaceuticals, Inc. is a biotechnology company specializing in the characterization and process engineering of complex molecules. These complex molecules include proteins, polypeptides, and cell surface polysaccharides, such as heparan-sulfate proteoglycans. This results in a diversified product pipeline of complex generic, follow-on biologic and novel drugs. Its EPS forecast for the current year is 2.05 and next year is 1.16. According to consensus estimates, its topline is expected to grow 77.6% current year and decline 28.52% next year. It is trading at a forward P/E of 13.61. Out of seven analysts covering the company, six are positive and have buy recommendations and one has a hold rating.

Comtech Telecommunications Corp. designs, develops and markets products, systems and services for communications solutions. The Company operates in three segments: telecommunications transmission, mobile data communications and radio frequency microwave amplifiers. Its EPS forecast for the current year is 2.06 and next year is 1.1. According to consensus estimates, its topline is expected to decline 20.5% current year and 31.91% next year. It is trading at a forward P/E of 27.01. Out of eight analysts covering the company, four are positive and have buy recommendations and four have hold ratings.

iStar Financial Inc. is a finance company focused on the commercial real estate industry. The company primarily provides financing to high-end private and corporate owners of real estate, including senior and mezzanine real estate debt, senior and mezzanine corporate capital, as well as corporate net lease financing and equity. Its EPS forecast for the current year is 0.04 and next year is -0.27. According to consensus estimates, its topline is expected to decline 23.27% current year and 13.52% next year. Out of four analysts covering the company, one is positive and has a buy recommendation and three have hold ratings.

Anworth Mortgage Asset Corporation is in the business of investing primarily in United States agency mortgage-backed securities, which are obligations guaranteed by the United States government, such as Government National Mortgage Association (Ginnie Mae), or federally sponsored enterprises, such as Federal National Mortgage Association (Fannie Mae) or Federal Home Loan Mortgage Corporation (Freddie Mac). Its EPS forecast for the current year is 0.96 and next year is 0.9. According to consensus estimates, its topline is expected to grow 12.53 % current year and decline -3.24% next year. It is trading at a forward P/E of 8.09. Out of 11 analysts covering the company, fivec are positive and have buy recommendations and six have hold ratings.

Vanguard Natural Resources, LLC is focused on the acquisition and development of natural gas and oil properties in the United States. Its EPS forecast for the current year is 2.67 and next year is 2.48. According to consensus estimates, its topline is expected to grow 223.63% current year and decline 0.59% next year. It is trading at a forward P/E of 13.11. Out of seven analysts covering the company, five are positive and have buy recommendations and two have hold ratings.

Diana Shipping Inc. is a holding company. The company is a global provider of shipping transportation services. It specialize in transporting dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes. Its EPS forecast for the current year is 1.38 and next year is 1. According to consensus estimates, its topline is expected to decline 6.54% current year and 9.82% next year. It is trading at a forward P/E of 12.13. Out of 21 analysts covering the company, 13 are positive and have buy recommendations and eight have hold ratings.

Source: 25 Small Caps With Sales and EPS Declining in 2012