Hellenic Exchanges - Athens Stock Exchange SA's (ATH:EXAE) Earnings Grew 115.26%, Did It Beat Long-Term Trend?

Investors with a long-term horizong may find it valuable to assess Hellenic Exchanges - Athens Stock Exchange SA's (ATSE:EXAE) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. Below is my commentary, albiet very simple and high-level, on how Hellenic Exchanges - Athens Stock Exchange is currently performing. See our latest analysis for Hellenic Exchanges - Athens Stock Exchange

How EXAE fared against its long-term earnings performance and its industry

I like to use data from the most recent 12 months, 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 technique enables me to assess different companies on a more comparable basis, using new information. For Hellenic Exchanges - Athens Stock Exchange, its most recent earnings (trailing twelve month) is €3.08M, which compared to the previous year's level, has rocketed up by more than double. Given that these values may be fairly nearsighted, I have computed an annualized five-year figure for EXAE's earnings, which stands at €15.00M This suggests that, although earnings increased from last year's level, over the longer term, Hellenic Exchanges - Athens Stock Exchange's earnings have been falling on average.

What could be happening here? Well, let's look at what's transpiring with margins and whether the entire industry is feeling the heat. Although revenue growth over the last couple of years, has been negative, earnings growth has been falling by even more, implying that Hellenic Exchanges - Athens Stock Exchange has been growing its expenses. This hurts margins and earnings, and is not a sustainable practice. Inspecting growth from a sector-level, the GR capital markets industry has been growing its average earnings by double-digit 18.01% over the previous twelve months, and 13.51% over the past five years. This means that any uplift the industry is profiting from, Hellenic Exchanges - Athens Stock Exchange is capable of leveraging this to its advantage.

What does this mean?

Hellenic Exchanges - Athens Stock Exchange's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Recent positive growth isn't always indicative of a continued optimistic outlook. There may be factors that are impacting the entire industry hence the high industry growth rate over the same time period. You should continue to research Hellenic Exchanges - Athens Stock Exchange to get a more holistic view of the stock by looking at:

• 1. Future Outlook: What are well-informed industry analysts predicting for EXAE’s future growth? Take a look at our free research report of analyst consensus for EXAE’s outlook.
• 2. Financial Health: Is EXAE’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 December 2017. 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.