ParkerVision Inc’s (NASDAQ:PRKR): ParkerVision, Inc. designs, develops, and markets radio frequency (RF) technologies for use in wireless communication products in the United States. The US$18.19M market-cap posted a loss in its most recent financial year of -US$19.26M and a latest trailing-twelve-month loss of -US$18.74M shrinking the gap between loss and breakeven. As path to profitability is the topic on PRKR’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for PRKR.
According to the industry analysts covering PRKR, breakeven is near. They expect the company to post a final loss in 2017, before turning a profit of US$18.05M in 2018. So, PRKR is predicted to breakeven approximately a couple of months from now! What rate will PRKR have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 265.63%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
I’m not going to go through company-specific developments for PRKR given that this is a high-level summary, but, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing I would like to bring into light with PRKR is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.
There are key fundamentals of PRKR which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at PRKR, take a look at PRKR’s company page on Simply Wall St. I’ve also compiled a list of important aspects you should further research:
- Historical Track Record: What has PRKR’s performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on ParkerVision’s board and the CEO’s back ground.
- 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.
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.