Assessing Howard Bancorp Inc’s (NASDAQ:HBMD) 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 HBMD’s recent performance announced on 31 December 2017 and evaluate these figures to its longer term trend and industry movements. View our latest analysis for Howard Bancorp
Did HBMD beat its long-term earnings growth trend and its industry?
I look at data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This blend allows me to assess different companies on a similar basis, using the most relevant data points. For Howard Bancorp, its most recent bottom-line (trailing twelve month) is US$7.20M, which, in comparison to last year’s figure, has moved up by 40.16%. Given that these values may be somewhat short-term thinking, I’ve calculated an annualized five-year figure for HBMD’s earnings, which stands at US$3.76M This means that, generally, Howard Bancorp has been able to consistently grow its profits over the last couple of years as well.
What’s enabled this growth? Well, let’s take a look at if it is only due to an industry uplift, or if Howard Bancorp has experienced some company-specific growth. In the past couple of years, Howard Bancorp increased its bottom line faster than revenue by efficiently controlling its costs. This has caused a margin expansion and profitability over time. Scanning growth from a sector-level, the US banks industry has been growing, albeit, at a muted single-digit rate of 3.40% in the prior year, and 8.11% over the past half a decade. This means that whatever near-term headwind the industry is facing, the impact on Howard Bancorp has been softer relative to its peers.
What does this mean?
Though Howard Bancorp’s past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Howard Bancorp gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Howard Bancorp to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for HBMD’s future growth? Take a look at our free research report of analyst consensus for HBMD’s outlook.
- Financial Health: Is HBMD’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.