voxeljet AG's (NYSE:VJET) Earnings Dropped -2.2%, How Did It Fare Against The Industry?
In this article, I will take a look at voxeljet AG's (NYSE:VJET) most recent earnings update (31 December 2018) and compare these latest figures against its performance over the past few years, along with how the rest of VJET'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.
See our latest analysis for voxeljet
Commentary On VJET's Past Performance
VJET is loss-making, with the most recent trailing twelve-month earnings of -€8.7m (from 31 December 2018), which compared to last year has become more negative. Furthermore, the company's loss seem to be growing over time, with the five-year earnings average of -€6.7m. Each year, for the past five years VJET has seen an annual increase in operating expense growth, outpacing revenue growth of 12%, on average. This adverse movement is a driver of the company's inability to reach breakeven.
Inspecting growth from a sector-level, the US machinery industry has been growing its average earnings by double-digit 26% in the prior year,
Although voxeljet is loss-making, its has a good cash runway to meet its upcoming operating expense (should SG&A and one-year R&D remain constant at the current level of €19m) over the next year. This is a strong indication of good cash management.
What does this mean?
voxeljet's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that incur net loss is always hard to forecast what will happen in the future and when. The most useful step is to assess company-specific issues voxeljet may be facing and whether management guidance has dependably been met in the past. I suggest you continue to research voxeljet to get a better picture of the stock by looking at:
Financial Health: Are VJET’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 2018. This may not be consistent with full year annual report figures.
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