Assessing Air Partner plc’s (LSE:AIR) 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 AIR’s recent performance announced on 31 July 2017 and evaluate these figures to its long-term trend and industry movements. View our latest analysis for Air Partner
How Did AIR’s Recent Performance Stack Up Against Its Past?
I look at the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This allows me to analyze different companies in a uniform manner using new information. “For Air Partner, its “, latest twelve-month earnings is £3.5M, which, against the prior year’s figure, has risen by 48.78%. Since these figures are relatively myopic, I’ve computed an annualized five-year value for AIR’s earnings, which stands at £2.6M. This means that, on average, Air Partner has been able to increasingly grow its net income over the past couple of years as well.What’s the driver of this growth? Well, let’s take a look at whether it is merely attributable to industry tailwinds, or if Air Partner has experienced some company-specific growth. Over the last couple of years, although bottom-line growth has seen a decrease, top-line growth has dropped at a faster rate, bringing about a margin expansion and Air Partner still maintaining profitability. Inspecting growth from a sector-level, the UK airlines industry has been growing, albeit, at a muted single-digit rate of 4.55% over the prior year, and a substantial 12.08% over the previous few years. This shows that any near-term headwind the industry is experiencing, Air Partner is less exposed compared to its peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Air Partner gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Air Partner to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for AIR’s future growth? Take a look at our free research report of analyst consensus for AIR’s outlook.
2. Financial Health: Is AIR’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.