Interested In Nxt-ID Inc (NXTD)? Here’s What Its Recent Track-Record Looks Like
Examining how Nxt-ID Inc (NASDAQ:NXTD) is performing as a company requires looking at more than just a years’ earnings. Below, I will run you through a simple sense check to build perspective on how Nxt-ID is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its software industry peers. See our latest analysis for NXTD
Did NXTD’s recent EPS Growth beat the long-term trend and the industry?
I prefer to 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 technique allows me to examine different stocks in a uniform manner using the latest information. Nxt-ID’s most recent earnings -$10M, which, against the previous year’s figure, has become less negative. Given that these figures may be relatively short-term thinking, I’ve computed an annualized five-year figure for NXTD’s net income, which stands at -$7M. This suggests that, Nxt-ID has historically performed better than recently, despite the fact that it seems like earnings are now heading back towards to right direction again.
Additionally, we can examine Nxt-ID’s loss by looking at what has been happening in the industry on top of within the company. First, I want to briefly look into the line items. Revenue growth over last few years has grew by 70.16%, indicating that Nxt-ID is in a high-growth period with expenses shooting ahead of elevated top-line growth rates. Scanning growth from a sector-level, the US software industry has been growing its average earnings by double-digit 18.12% in the prior year, and a less exciting 7.70% over the past five years. This shows that, despite the fact that Nxt-ID is currently running a loss, it may have been aided by industry tailwinds, moving earnings in the right direction.
What does this mean?
Nxt-ID’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. With companies that are currently loss-making, it is always hard to forecast what will happen in the future and when. The most insightful step is to examine company-specific issues Nxt-ID may be facing and whether management guidance has dependably been met in the past. I suggest you continue to research Nxt-ID to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for NXTD’s future growth? Take a look at our free research report of analyst consensus for NXTD’s outlook.
2. Financial Health: Is NXTD’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.
