For investors with a long-term horizon, examining earnings trend over time and against industry peers is more insightful than looking at an earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on AngioDynamics Inc (NASDAQ:ANGO) useful as an attempt to give more color around how AngioDynamics is currently performing. See our latest analysis for AngioDynamics
How Did ANGO’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 technique allows me to examine many different companies on a similar basis, using the latest information. For AngioDynamics, its most recent trailing-twelve-month earnings is -US$9.81M, which compared to the previous year’s figure, has become less negative. Since these figures are relatively short-term thinking, I have created an annualized five-year value for AngioDynamics’s net income, which stands at -US$5.66M. This means that, AngioDynamics has historically performed better than recently, even though it seems like earnings are now heading back towards to right direction again.
We can further evaluate AngioDynamics’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years AngioDynamics’s top-line has increased by a mere 6.83%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Scanning growth from a sector-level, the US medical equipment industry has been growing its average earnings by double-digit 10.69% over the prior year, and a more subdued 9.16% over the past five years. This means that, despite the fact that AngioDynamics is currently loss-making, it may have benefited from industry tailwinds, moving earnings into a more favorable position.
What does this mean?
AngioDynamics’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 difficult to envisage what will occur going forward, and when. The most valuable step is to assess company-specific issues AngioDynamics may be facing and whether management guidance has dependably been met in the past. I recommend you continue to research AngioDynamics to get a more holistic view of the stock by looking at:
- 1. Future Outlook: What are well-informed industry analysts predicting for ANGO’s future growth? Take a look at our free research report of analyst consensus for ANGO’s outlook.
- 2. Financial Health: Is ANGO’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 trailing twelve months from 30 November 2017. 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.