Assessing Intrexon Corporation’s (NYSE:XON) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess XON’s recent performance announced on 30 September 2017 and evaluate these figures to its long-term trend and industry movements. View our latest analysis for Intrexon
Were XON’s earnings stronger than its past performances and the industry?
For the most up-to-date info, 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 technique allows me to analyze many different companies in a uniform manner using new information. Intrexon’s most recent earnings -$134M, which, against last year’s figure, has become less negative. Given that these values may be relatively myopic, I have computed an annualized five-year figure for XON’s net income, which stands at -$105M. This means that, Intrexon has historically performed better than recently, though it seems like earnings are now heading back in the right direction again.
Additionally, we can examine Intrexon’s loss by looking at what has been happening in the industry as well as within the company. First, I want to quickly look into the line items. Revenue growth over past few years has grew by 44.22%, indicating that Intrexon is in a high-growth period with expenses shooting ahead of high top-line growth rates. Inspecting growth from a sector-level, the US biotechnology industry has been growing, albeit, at a muted single-digit rate of 8.45% over the previous year, and a substantial 22.54% over the previous five years. This suggests that, although Intrexon is presently running a loss, it may have been aided by industry tailwinds, moving earnings towards to right direction.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always difficult to envisage what will happen in the future and when. The most useful step is to examine company-specific issues Intrexon may be facing and whether management guidance has regularly been met in the past. I recommend you continue to research Intrexon to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for XON’s future growth? Take a look at our free research report of analyst consensus for XON’s outlook.
2. Financial Health: Is XON’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.