Does Avinger Inc’s (NASDAQ:AVGR) Past Performance Indicate A Stronger Future?
Understanding how Avinger Inc (NASDAQ:AVGR) is performing as a company requires looking at more than just a years’ earnings. Today I will run you through a basic sense check to gain perspective on how Avinger is doing by comparing its latest earnings with its long-term trend as well as the performance of its medical equipment industry peers. View our latest analysis for Avinger
How Did AVGR’s Recent Performance Stack Up Against Its Past?
I like to 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 blend allows me to analyze many different companies on a more comparable basis, using the latest information. For Avinger, its most recent bottom-line (trailing twelve month) is -$52.1M, which, against the previous year’s level, has become less negative. Since these figures are relatively short-term thinking, I’ve calculated an annualized five-year figure for Avinger’s earnings, which stands at -$44.9M. This shows that, Avinger has historically performed better than recently, though it seems like earnings are now heading back towards to right direction again.
We can further analyze Avinger’s loss by looking at what’s going on in the industry as well as within the company. Initially, I want to briefly look into the line items. Revenue growth over the past couple of years has increased by 11.62%, implying that Avinger is in a high-growth phase with expenses racing ahead elevated top-line growth rates, leading to yearly losses. Eyeballing growth from a sector-level, the US medical equipment industry has been growing its average earnings by double-digit 18.40% in the prior twelve months, and a more subdued 9.02% over the past five. This means that whatever uplift the industry is benefiting from, Avinger has not been able to gain as much as its industry peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always difficult to forecast what will happen in the future and when. The most insightful step is to examine company-specific issues Avinger may be facing and whether management guidance has dependably been met in the past. I suggest you continue to research Avinger to get a better picture of the stock by looking at:
1. Financial Health: Is AVGR’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.
2. 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.
