Understanding Civeo Corporation’s (NYSE:CVEO) performance as a company requires examining more than earnings from one point in time. Today I will take you through a basic sense check to gain perspective on how Civeo is doing by evaluating its latest earnings with its longer term trend as well as its industry peers’ performance over the same period. View our latest analysis for Civeo
How Did CVEO’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 latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This blend enables me to examine many different companies on a similar basis, using the latest information. For Civeo, its most recent trailing-twelve-month earnings is -$74.1M, which, against the prior year’s figure, has become less negative. Given that these figures are somewhat myopic, I’ve determined an annualized five-year figure for CVEO’s earnings, which stands at -$39.9M. This suggests that, Civeo has historically performed better than recently, while it seems like earnings are now heading back towards to right direction again.We can further evaluate Civeo’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Civeo has seen an annual decline in revenue of -22.07%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Scanning growth from a sector-level, the US commercial services industry has been growing, albeit, at a muted single-digit rate of 6.67% over the prior twelve months, and 8.88% over the past five years. This suggests that, while Civeo is presently unprofitable, it may have benefited from industry tailwinds, moving earnings towards to right direction.
What does this mean?
Civeo’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. With companies that are currently loss-making, it is always hard to forecast what will happen in the future and when. The most valuable step is to examine company-specific issues Civeo may be facing and whether management guidance has steadily been met in the past. You should continue to research Civeo to get a better picture of the stock by looking at:
- 1. Future Outlook: What are well-informed industry analysts predicting for CVEO’s future growth? Take a look at our free research report of analyst consensus for CVEO’s outlook.
- 2. Financial Health: Is CVEO’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.