Foshan Golden Milky Way Intelligent Equipment's (SZSE:300619) earnings have declined over year, contributing to shareholders 63% loss

This week we saw the Foshan Golden Milky Way Intelligent Equipment Co., Ltd. (SZSE:300619) share price climb by 17%. But that isn't much consolation to those who have suffered through the declines of the last year. During that time the share price has sank like a stone, descending 63%. So the bounce should be viewed in that context. It may be that the fall was an overreaction.

On a more encouraging note the company has added CN¥379m to its market cap in just the last 7 days, so let's see if we can determine what's driven the one-year loss for shareholders.

View our latest analysis for Foshan Golden Milky Way Intelligent Equipment

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Unfortunately Foshan Golden Milky Way Intelligent Equipment reported an EPS drop of 43% for the last year. This reduction in EPS is not as bad as the 63% share price fall. So it seems the market was too confident about the business, a year ago.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

It might be well worthwhile taking a look at our free report on Foshan Golden Milky Way Intelligent Equipment's earnings, revenue and cash flow.

A Different Perspective

While the broader market lost about 18% in the twelve months, Foshan Golden Milky Way Intelligent Equipment shareholders did even worse, losing 63% (even including dividends). However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. On the bright side, long term shareholders have made money, with a gain of 2% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Foshan Golden Milky Way Intelligent Equipment better, we need to consider many other factors. For instance, we've identified 5 warning signs for Foshan Golden Milky Way Intelligent Equipment (2 don't sit too well with us) that you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Chinese exchanges.

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This article by Simply Wall St 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. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com