Examining Anthera Pharmaceuticals Inc’s (NASDAQ:ANTH) 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 ANTH’s latest performance announced on 30 September 2017 and compare these figures to its longer term trend and industry movements. See our latest analysis for ANTH
How Did ANTH’s Recent Performance Stack Up Against Its Past?
To account for any quarterly or half-yearly updates, I use 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 various companies on a similar basis, using the most relevant data points. Anthera Pharmaceuticals’s most recent earnings -$35M, which, relative to last year’s figure, has become less negative. Since these figures may be relatively short-term, I’ve created an annualized five-year value for ANTH’s earnings, which stands at -$49M. This means that, though net income is negative, it has become less negative over the years.
We can further examine Anthera Pharmaceuticals’s loss by looking at what’s going on in the industry as well as within the company. Firstly, I want to briefly look into the line items. Revenue growth over last couple of years has been negative at -42.71%. The key to profitability here is to make sure the company’s cost growth is well-managed. Viewing growth from a sector-level, the US biotechnology industry has been growing, albeit, at a muted single-digit rate of 8.45% in the prior year, and a substantial 22.54% over the previous five years. This means although Anthera Pharmaceuticals is presently loss-making, it may have benefited from industry tailwinds, moving earnings in the right direction.
What does this mean?
Though Anthera Pharmaceuticals’s past data is helpful, it is only one aspect of my investment thesis. Companies that incur net loss is always difficult to forecast what will occur going forward, and when. The most valuable step is to examine company-specific issues Anthera Pharmaceuticals may be facing and whether management guidance has consistently been met in the past. I suggest you continue to research Anthera Pharmaceuticals to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for ANTH’s future growth? Take a look at our free research report of analyst consensus for ANTH’s outlook.
2. Financial Health: Is ANTH’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.