Improvement in profitability and outperformance against the industry can be important characteristics in a stock for some investors. Below, I will assess CTI BioPharma Corp’s (NASDAQ:CTIC) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. See our latest analysis for CTI BioPharma
Commentary On CTIC’s Past Performance
To account for any quarterly or half-yearly updates, I 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 allows me to examine different stocks on a more comparable basis, using the most relevant data points. CTI BioPharma’s most recent twelve-month earnings -$37.1M, which compared to the prior year’s figure, has become less negative. Given that these figures are fairly nearsighted, I’ve estimated an annualized five-year figure for CTI BioPharma’s earnings, which stands at -$94.0M. This means although net income is negative, it has become less negative over the years.
Additionally, we can evaluate CTI BioPharma’s loss by researching what has been happening in the industry on top of within the company. First, I want to briefly look into the line items. Revenue growth over the past couple of years has risen by 25.16%, signalling that CTI BioPharma is in a high-growth period with expenses shooting ahead of high top-line growth rates. Scanning growth from a sector-level, the US biotechnology industry has been growing its average earnings by double-digit 11.07% in the prior year, and 20.18% over the previous five years. This means though CTI BioPharma is currently loss-making, it may have been aided by industry tailwinds, moving earnings in the right direction.
What does this mean?
Though CTI BioPharma’s past data is helpful, it is only one aspect of my investment thesis. Companies that incur net loss is always difficult to envisage what will happen in the future and when. The most valuable step is to examine company-specific issues CTI BioPharma may be facing and whether management guidance has steadily been met in the past. I recommend you continue to research CTI BioPharma to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for CTIC’s future growth? Take a look at our free research report of analyst consensus for CTIC’s outlook.
2. Financial Health: Is CTIC’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 last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. 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.