Examining Astrotech Corporation’s (NASDAQ:ASTC) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess ASTC’s latest performance announced on 31 December 2017 and weigh these figures against its longer term trend and industry movements. See our latest analysis for Astrotech
How Well Did ASTC Perform?
To account for any quarterly or half-yearly updates, I 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 examine different stocks in a uniform manner using the most relevant data points. For Astrotech, its latest earnings (trailing twelve month) is -US$11.71M, which, against last year’s level, has become less negative. Since these values may be relatively short-term thinking, I have calculated an annualized five-year figure for ASTC’s net income, which stands at -US$7.05M. This shows that, Astrotech has historically performed better than recently, although it seems like earnings are now heading back towards a more favorable position once more.
We can further assess Astrotech’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Astrotech has seen an annual decline in revenue of -40.45%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Eyeballing growth from a sector-level, the US aerospace & defense industry has been growing, albeit, at a unexciting single-digit rate of 5.31% over the past twelve months, and 4.55% over the past five years. This suggests that, even though Astrotech is currently loss-making, it may have been aided by industry tailwinds, moving earnings towards to right direction.
What does this mean?
While past data is useful, it doesn’t tell the whole story. With companies that are currently loss-making, it is always difficult to forecast what will occur going forward, and when. The most valuable step is to examine company-specific issues Astrotech may be facing and whether management guidance has regularly been met in the past. I suggest you continue to research Astrotech to get a more holistic view of the stock by looking at:
- 1. Financial Health: Is ASTC’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 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.