Today I will examine Proteomics International Laboratories Ltd’s (ASX:PIQ) latest earnings update (30 June 2017) and compare these figures against its performance over the past couple of years, in addition to how the rest of PIQ’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. Check out our latest analysis for Proteomics International Laboratories
How PIQ fared against its long-term earnings performance and its industry
For the most up-to-date info, I use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This blend allows me to examine different stocks on a more comparable basis, using new information. Proteomics International Laboratories’s latest twelve-month earnings -A$0.9M, which compared to the prior year’s level, has become less negative. Since these figures are fairly short-term thinking, I have calculated an annualized five-year figure for Proteomics International Laboratories’s net income, which stands at -A$1.1M. This means although net income is negative, it has become less negative over the years.
We can further examine Proteomics International Laboratories’s loss by researching what’s going on in the industry on top of within the company. Firstly, I want to quickly look into the line items. Revenue growth over the past couple of years has risen by 11.44%, indicating that Proteomics International Laboratories is in a high-growth phase with expenses racing ahead elevated top-line growth rates. Looking at growth from a sector-level, the Australian life sciences tools and services industry has been enduring some headwinds over the past couple of years, leading to an average earnings drop of -25.58% in the most recent year. This suggests that whatever recent headwind the industry is facing, the impact on Proteomics International Laboratories has been softer relative to its peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always hard to envisage what will occur going forward, and when. The most valuable step is to examine company-specific issues Proteomics International Laboratories may be facing and whether management guidance has dependably been met in the past. I recommend you continue to research Proteomics International Laboratories to get a better picture of the stock by looking at: