Where ANI Pharmaceuticals Inc’s (NASDAQ:ANIP) Earnings Growth Stands Against Its Industry
After looking at ANI Pharmaceuticals Inc’s (NASDAQ:ANIP) latest earnings announcement (31 December 2017), I found it useful to revisit the company’s performance in the past couple of years and assess this against the most recent figures. As a long term investor, I pay close attention to earnings trend, rather than the figures published at one point in time. I also compare against an industry benchmark to check whether ANI Pharmaceuticals’s performance has been impacted by industry movements. In this article I briefly touch on my key findings. See our latest analysis for ANI Pharmaceuticals
Despite a decline, did ANIP underperform the long-term trend 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 blend enables me to examine different stocks on a similar basis, using new information. For ANI Pharmaceuticals, its most recent earnings (trailing twelve month) is -US$1.08M, which, in comparison to last year’s level, has turned from positive to negative. Given that these figures are fairly myopic, I’ve estimated an annualized five-year figure for ANI Pharmaceuticals’s net income, which stands at US$6.93M.
We can further examine ANI Pharmaceuticals’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years ANI Pharmaceuticals’s top-line has risen by 38.64% on average, signalling that the company is in a high-growth phase with expenses racing ahead revenues, leading to annual losses. Inspecting growth from a sector-level, the US pharmaceuticals industry has been growing its average earnings by double-digit 11.75% in the prior year, and a less exciting 9.75% over the past five years. This shows that any tailwind the industry is enjoying, ANI Pharmaceuticals has not been able to leverage it as much as its average peer.
What does this mean?
While past data is useful, it doesn’t tell the whole story. With companies that are currently loss-making, it is always difficult to forecast what will happen in the future and when. The most useful step is to assess company-specific issues ANI Pharmaceuticals may be facing and whether management guidance has regularly been met in the past. You should continue to research ANI Pharmaceuticals to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for ANIP’s future growth? Take a look at our free research report of analyst consensus for ANIP’s outlook.
2. Financial Health: Is ANIP’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 31 December 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.