Assessing Corbus Pharmaceuticals Holdings Inc’s (NASDAQ:CRBP) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess CRBP’s latest performance announced on 31 March 2018 and evaluate these figures to its historical trend and industry movements. Check out our latest analysis for Corbus Pharmaceuticals Holdings
Was CRBP’s recent earnings decline worse than the long-term trend and the industry?
To account for any quarterly or half-yearly updates, I use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This allows me to analyze different companies on a similar basis, using the latest information. For Corbus Pharmaceuticals Holdings, its most recent trailing-twelve-month earnings is -US$36.65M, which, in comparison to last year’s level, has become more negative. Since these values are fairly myopic, I’ve computed an annualized five-year value for CRBP’s net income, which stands at -US$12.70M. This doesn’t seem to paint a better picture, as earnings seem to have gradually been getting more and more negative over time.
We can further examine Corbus Pharmaceuticals Holdings’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Corbus Pharmaceuticals Holdings’s top-line has increased by 57.79% on average, implying that the company is in a high-growth period with expenses racing ahead revenues, leading to annual losses. Inspecting growth from a sector-level, the US biotechs industry has been growing its average earnings by double-digit 21.75% over the prior year, and 17.76% over the past five years. This means any uplift the industry is deriving benefit from, Corbus Pharmaceuticals Holdings has not been able to leverage it as much as its industry peers.
What does this mean?
Corbus Pharmaceuticals Holdings’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 predict what will happen in the future and when. The most insightful step is to assess company-specific issues Corbus Pharmaceuticals Holdings may be facing and whether management guidance has steadily been met in the past. I recommend you continue to research Corbus Pharmaceuticals Holdings to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for CRBP’s future growth? Take a look at our free research report of analyst consensus for CRBP’s outlook.
- Financial Health: Is CRBP’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.