Assessing CTI BioPharma Corp’s (NASDAQ:CTIC) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess CTIC’s recent performance announced on 31 December 2017 and evaluate these figures to its longer term trend and industry movements. See our latest analysis for CTI BioPharma
How CTIC 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 allows me to examine many different companies in a uniform manner using the most relevant data points. For CTI BioPharma, its latest earnings (trailing twelve month) is -US$45.02M, which, against the previous year’s level, has become less negative. Given that these figures may be somewhat short-term, I’ve determined an annualized five-year value for CTIC’s net income, which stands at -US$87.91M. This means that, although net income is negative, it has become less negative over the years.
We can further analyze CTI BioPharma’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade CTI BioPharma’s top-line has grown by 18.92% on average, implying that the company is in a high-growth phase with expenses racing ahead revenues, leading to annual losses. Looking at growth from a sector-level, the US biotechs industry has been growing its average earnings by double-digit 22.93% over the prior year, and 20.37% over the past five years. This suggests that any uplift the industry is deriving benefit from, CTI BioPharma has not been able to reap 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 predict what will happen in the future and when. The most insightful step is to assess company-specific issues CTI BioPharma may be facing and whether management guidance has dependably been met in the past. You should continue to research CTI BioPharma to get a better picture of the stock by looking at:
- 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.
- 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.
- 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 December 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.