Interested In Qt Group Oyj (HLSE:QTCOM)? Here's How It Performed Recently

Analyzing Qt Group Oyj's (HLSE:QTCOM) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess QTCOM's recent performance announced on 31 March 2018 and compare these figures to its long-term trend and industry movements. See our latest analysis for Qt Group Oyj

Was QTCOM weak performance lately part of a long-term decline?

QTCOM is loss-making, with the most recent trailing twelve-month earnings of -€3.08m (from 31 March 2018), which compared to last year has become more negative. However, the company's loss seem to be contracting over the medium term, with the five-year earnings average of -€1.73m. Each year, for the past five years QTCOM has seen an annual increase in operating expense growth, outpacing revenue growth of 16.31%, on average. This adverse movement is a driver of the company's inability to reach breakeven. Scanning growth from a sector-level, the FI software industry has been enduring some headwinds in the previous year, leading to an average earnings drop of -23.33%. This is a major change, given that the industry has constantly been delivering a a strong growth of 11.58% in the past five years. This shows that although Qt Group Oyj is currently loss-making, any recent headwind the industry is experiencing, the impact on Qt Group Oyj has been softer relative to its peers.

Even though Qt Group Oyj is currently unprofitable, its has a good cash runway to meet its upcoming operating expense (should SG&A and one-year R&D remain constant at the current level of €3.99m) over the next year. This is a strong indication of good cash management.

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 predict what will occur going forward, and when. The most insightful step is to assess company-specific issues Qt Group Oyj may be facing and whether management guidance has consistently been met in the past. I suggest you continue to research Qt Group Oyj to get a better picture of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for QTCOM’s future growth? Take a look at our free research report of analyst consensus for QTCOM’s outlook.
2. Financial Health: Is QTCOM’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 March 2018. This may not be consistent with full year annual report figures.

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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.