In this article, I will take a look at Blonder Tongue Laboratories Inc’s (AMEX:BDR) most recent earnings update (30 September 2017) and compare these latest figures against its performance over the past few years, along with how the rest of BDR’s industry performed. As a long-term investor, I find it useful to analyze the company’s trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time. Check out our latest analysis for Blonder Tongue Laboratories
How BDR fared against its long-term earnings performance and its industry
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 enables me to analyze different stocks in a uniform manner using new information. For Blonder Tongue Laboratories, its latest earnings (trailing twelve month) is -US$978.00K, which, against the previous year’s figure, has become less negative. Given that these values are fairly short-term, I have calculated an annualized five-year figure for BDR’s earnings, which stands at -US$2.48M. This shows that, despite the fact that net income is negative, it has become less negative over the years.
We can further assess Blonder Tongue Laboratories’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Blonder Tongue Laboratories has seen an annual decline in revenue of -4.95%, 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 communications industry has been growing its average earnings by double-digit 10.35% in the past year, and a more subdued 9.76% over the past half a decade. This means although Blonder Tongue Laboratories is currently running a loss, it may have benefited from industry tailwinds, moving earnings towards to right direction.
What does this mean?
Though Blonder Tongue Laboratories’s past data is helpful, it is only one aspect of my investment thesis. 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 Blonder Tongue Laboratories may be facing and whether management guidance has steadily been met in the past. I suggest you continue to research Blonder Tongue Laboratories to get a more holistic view of the stock by looking at the areas below. Just a heads up – to access some parts of the Simply Wall St research tool you might be asked to create a free account, but it takes just one click and the information they provide is definitely worth it in my opinion.
- 1. Financial Health: Is BDR’s operations financially sustainable? Balance sheets can be hard to analyze, which is why Simply Wall St does it for you. Check out important financial health checks here.
- 2. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore a 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.