Interested In Lianluo Smart Limited (LLIT)? Here’s What Its Recent Track-Record Looks Like
Today I will take a look at Lianluo Smart Limited’s (NASDAQ:LLIT) most recent earnings update (30 June 2017) and compare these latest figures against its performance over the past few years, as well as how the rest of the healthcare equipment and supplies industry performed. As an investor, I find it beneficial to assess LLIT’s trend over the short-to-medium term in order to gauge whether or not the company is able to meet its goals, and ultimately sustainably grow over time. Check out our latest analysis for Lianluo Smart
How Did LLIT’s Recent Performance Stack Up Against Its Past?
For the most up-to-date info, I use the ‘latest twelve-month’ data, 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 many different companies in a uniform manner using the latest information. Lianluo Smart’s latest twelve-month earnings -$5M, which, against the prior year’s level, has become less negative. Since these values are relatively short-term thinking, I’ve computed an annualized five-year value for LLIT’s earnings, which stands at -$1M. This means Lianluo Smart has historically performed better than recently, despite the fact that it seems like earnings are now heading back towards a more favorable position once more.
Additionally, we can evaluate Lianluo Smart’s loss by researching what has been happening in the industry along with within the company. Firstly, I want to briefly look into the line items. Revenue growth over last few years has been negative at -19.94%. The key to profitability here is to make sure the company’s cost growth is well-controlled. Scanning growth from a sector-level, the US healthcare equipment and supplies industry has been growing its average earnings by double-digit 15.51% over the prior year, and a less exciting 8.10% over the past five. This suggests that, even though Lianluo Smart is presently unprofitable, it may have gained from industry tailwinds, moving earnings in the right direction.
What does this mean?
Though Lianluo Smart’s past data is helpful, it is only one aspect of my investment thesis. With companies that are currently loss-making, it is always hard to predict what will occur going forward, and when. The most insightful step is to examine company-specific issues Lianluo Smart may be facing and whether management guidance has dependably been met in the past. I recommend you continue to research Lianluo Smart to get a better picture of the stock by looking at:
1. Financial Health: Is LLIT’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 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.
