Examining Remark Holdings Inc’s (NASDAQ:MARK) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess MARK’s latest performance announced on 30 September 2017 and weight these figures against its longer term trend and industry movements. See our latest analysis for MARK
Did MARK beat its long-term earnings growth trend and its industry?
I prefer to use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This enables me to assess different stocks on a more comparable basis, using new information. For Remark Holdings, the most recent earnings -$26.2M, which, relative to the previous year’s level, has become less negative. Given that these figures are relatively nearsighted, I’ve created an annualized five-year figure for Remark Holdings’s net income, which stands at -$15.8M. This means Remark Holdings has historically performed better than recently, despite the fact that it seems like earnings are now heading back towards to right direction again.
Additionally, we can analyze Remark Holdings’s loss by researching what has been happening in the industry on top of within the company. Firstly, I want to briefly look into the line items. Revenue growth over past couple of years has rose by 51.88%, indicating that Remark Holdings is in a high-growth phase with expenses racing ahead elevated top-line growth rates. Inspecting growth from a sector-level, the US internet software and services industry has been growing its average earnings by double-digit 15.49% in the prior twelve months, and 19.30% over the past couple of years. This suggests that, despite the fact that Remark Holdings is presently unprofitable, it may have been aided by industry tailwinds, moving earnings in the right direction.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always hard to forecast what will occur going forward, and when. The most valuable step is to assess company-specific issues Remark Holdings may be facing and whether management guidance has steadily been met in the past. I suggest you continue to research Remark Holdings to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for MARK’s future growth? Take a look at our free research report of analyst consensus for MARK’s outlook.
2. Financial Health: Is MARK’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.