Measuring Pieris Pharmaceuticals Inc’s (NASDAQ:PIRS) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess PIRS’s recent performance announced on 31 March 2018 and compare these figures to its historical trend and industry movements. See our latest analysis for Pieris Pharmaceuticals
How PIRS fared against its long-term earnings performance and its industry
I prefer to use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This method enables me to assess different stocks in a uniform manner using the most relevant data points. For Pieris Pharmaceuticals, its most recent bottom-line (trailing twelve month) is -US$18.37M, which, against last year’s figure, has become less negative. Given that these figures may be fairly short-term, I have calculated an annualized five-year figure for Pieris Pharmaceuticals’s earnings, which stands at -US$15.94M. This shows that, Pieris Pharmaceuticals has historically performed better than recently, although it seems like earnings are now heading back towards to right direction again.
We can further examine Pieris Pharmaceuticals’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Pieris Pharmaceuticals’s top-line has grown by 21.77% on average, implying that the company is in a high-growth phase with expenses shooting ahead of revenues, leading to annual losses. Eyeballing growth from a sector-level, the US biotechs industry has been growing its average earnings by double-digit 21.75% over the past twelve months, and 18.58% over the last five years. This shows that, even though Pieris Pharmaceuticals is presently loss-making, it may have gained from industry tailwinds, moving earnings in the right direction.
What does this mean?
Pieris Pharmaceuticals’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. With companies that are currently loss-making, it is always hard to predict what will occur going forward, and when. The most valuable step is to assess company-specific issues Pieris Pharmaceuticals may be facing and whether management guidance has regularly been met in the past. I recommend you continue to research Pieris Pharmaceuticals to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for PIRS’s future growth? Take a look at our free research report of analyst consensus for PIRS’s outlook.
- Financial Health: Is PIRS’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.
- 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 31 March 2018. 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.