Assessing Acorda Therapeutics Inc’s (NASDAQ:ACOR) performance as a company requires looking at more than just a years’ earnings data. Below, I will run you through a simple sense check to build perspective on how Acorda Therapeutics is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its biotechs industry peers. View our latest analysis for Acorda Therapeutics
How Well Did ACOR Perform?
I look at data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This method enables me to examine various companies in a uniform manner using new information. For Acorda Therapeutics, its most recent trailing-twelve-month earnings is -US$55.39M, which, relative to the previous year’s level, has become more negative. Since these figures are somewhat myopic, I have created an annualized five-year value for ACOR’s earnings, which stands at US$26.49M.
We can further assess Acorda Therapeutics’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Acorda Therapeutics’s top-line has grown by 12.59% on average, indicating that the company is in a high-growth period with expenses racing ahead revenues, leading to annual losses. Eyeballing growth from a sector-level, the US biotechs industry has been growing its average earnings by double-digit 13.11% in the previous twelve months, and 19.44% over the past half a decade. This means whatever uplift the industry is benefiting from, Acorda Therapeutics has not been able to reap as much as its industry peers.
What does this mean?
Acorda Therapeutics’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that incur net loss is always hard to forecast what will occur going forward, and when. The most insightful step is to assess company-specific issues Acorda Therapeutics may be facing and whether management guidance has dependably been met in the past. I suggest you continue to research Acorda Therapeutics to get a better picture of the stock by looking at:
- 1. Future Outlook: What are well-informed industry analysts predicting for ACOR’s future growth? Take a look at our free research report of analyst consensus for ACOR’s outlook.
- 2. Financial Health: Is ACOR’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 30 September 2017. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.