How China Mobile Limited's (NYSE:CHL) Recent Earnings Fared Against The Long Term Trend
When China Mobile Limited (NYSE:CHL) released its most recent earnings update (30 September 2017), I wanted to understand how these figures stacked up against its past performance. The two benchmarks I used were China Mobile's average earnings over the past couple of years, and its industry performance. These are useful yardsticks to help me gauge whether or not CHL actually performed well. Below is a quick commentary on how I see CHL has performed. View our latest analysis for China Mobile
How Did CHL's Recent Performance Stack Up Against Its Past?
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 technique enables me to analyze various companies on a similar basis, using the latest information. For China Mobile, the latest earnings is CN¥112,741.0M, which, in comparison to last year’s level, Given that these figures are fairly nearsighted, I’ve created an annualized five-year value for CHL's net income, which stands at CN¥117,727.3M. This shows that China Mobile's average annual earnings have traditionally been higher, which signals a falling trend in earnings.
What does this mean?
Though China Mobile's past data is helpful, it is only one aspect of my investment thesis. Recent positive growth isn't always indicative of a continued optimistic outlook. I recommend you continue to research China Mobile to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for CHL’s future growth? Take a look at our free research report of analyst consensus for CHL’s outlook.
2. Financial Health: Is CHL’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.New: Manage All Your Stock Portfolios in One Place
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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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