Today I will examine Fluidigm Corporation’s (NASDAQ:FLDM) latest earnings update (30 September 2017) and compare these figures against its performance over the past couple of years, in addition to how the rest of FLDM’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 Fluidigm
Were FLDM’s earnings stronger than its past performances and the industry?
For the most up-to-date info, I use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This method allows me to analyze different companies on a more comparable basis, using the most relevant data points. For Fluidigm, its latest earnings is -$67.8M, which, relative to the previous year’s figure, has become less negative. Since these figures may be fairly short-term, I have created an annualized five-year value for Fluidigm’s net income, which stands at -$40.7M. This means Fluidigm has historically performed better than recently, even though it seems like earnings are now heading back towards to right direction again.
Additionally, we can evaluate Fluidigm’s loss by looking at what’s going on in the industry as well as within the company. Firstly, I want to quickly look into the line items. Revenue growth over the last few years has risen by 17.07%, signalling that Fluidigm is in a high-growth phase with expenses shooting ahead of elevated top-line growth rates, leading to yearly losses. Eyeballing growth from a sector-level, the US life sciences tools and services industry has been growing its average earnings by double-digit 11.95% over the previous year, and 18.57% over the past five. This shows that any uplift the industry is benefiting from, Fluidigm has not been able to gain as much as its average peer.
What does this mean?
Though Fluidigm’s past data is helpful, it is only one aspect of my investment thesis. Companies that incur net loss is always hard to predict what will occur going forward, and when. The most insightful step is to assess company-specific issues Fluidigm may be facing and whether management guidance has steadily been met in the past. I recommend you continue to research Fluidigm to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for FLDM’s future growth? Take a look at our free research report of analyst consensus for FLDM’s outlook.
2. Financial Health: Is FLDM’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.