Examining Q Technology Group Limited’s (ASX:QTG) 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 QTG’s latest performance announced on 30 June 2017 and compare these figures to its longer term trend and industry movements. Check out our latest analysis for Q Technology Group
Were QTG’s earnings stronger than its past performances and the industry?
I like to 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 allows me to examine different companies in a uniform manner using the latest information. For Q Technology Group, its most recent earnings (trailing twelve month) is -A$1.9M, which compared to the prior year’s figure, has become less negative. Given that these figures are fairly short-term, I have determined an annualized five-year value for Q Technology Group’s net income, which stands at -A$2.6M. This shows that, although net income is negative, it has become less negative over the years.
Additionally, we can evaluate Q Technology Group’s loss by looking at what has been happening in the industry as well as within the company. Firstly, I want to quickly look into the line items. Revenue growth over the past couple of years has been negative at -9.61%. The key to profitability here is to make sure the company’s cost growth is well-controlled. Scanning growth from a sector-level, the Australian electronic equipment, instruments and components industry has been growing its average earnings by double-digit 17.56% in the previous year, and 10.90% over the previous five years. This suggests that, despite the fact that Q Technology Group is presently unprofitable, it may have benefited from industry tailwinds, moving earnings into a more favorable position.
What does this mean?
Q Technology Group’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. With companies that are currently loss-making, it is always difficult to predict what will happen in the future and when. The most insightful step is to assess company-specific issues Q Technology Group may be facing and whether management guidance has dependably been met in the past. I suggest you continue to research Q Technology Group to get a better picture of the stock by looking at: