Has Public Joint Stock Company United Aircraft Corporation (MCX:UNAC) Improved Earnings Growth In Recent Times?

Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at Public Joint Stock Company United Aircraft Corporation's (MISX:UNAC) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. See our latest analysis for United Aircraft

How Did UNAC's Recent Performance Stack Up Against Its Past?

To account for any quarterly or half-yearly updates, I use 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 enables me to assess different companies in a uniform manner using new information. For United Aircraft, its latest earnings (trailing twelve month) is -RUРУБ2.20B, which compared to last year’s level, has become less negative. Given that these values are fairly nearsighted, I have estimated an annualized five-year figure for United Aircraft's earnings, which stands at -RUРУБ23.05B. This shows that, though net income is negative, it has become less negative over the years.

We can further examine United Aircraft's loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years United Aircraft's top-line has grown by 19.27% on average, implying that the company is in a high-growth period with expenses shooting ahead of revenues, leading to annual losses. Eyeballing growth from a sector-level, the RU aerospace & defense industry has been growing its average earnings by double-digit 13.64% in the prior year, and a more muted 6.23% over the past five years. This means although United Aircraft is presently unprofitable, it may have gained from industry tailwinds, moving earnings towards to right direction.

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 envisage what will happen in the future and when. The most valuable step is to assess company-specific issues United Aircraft may be facing and whether management guidance has dependably been met in the past. I suggest you continue to research United Aircraft to get a better picture of the stock by looking at:

• 1. Financial Health: Is UNAC’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.
• 2. 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 30 June 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.