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Green Plains Partners LP (NASDAQ:GPP): Does The -3.92% Earnings Drop Reflect A Longer Term Trend?
When Green Plains Partners LP (NASDAQ:GPP) announced its most recent earnings (31 March 2018), I did two things: looked at its past earnings track record, then look at what is happening in the industry. Understanding how Green Plains Partners performed requires a benchmark rather than trying to assess a standalone number at one point in time. Below is a quick commentary on how I see GPP has performed. View our latest analysis for Green Plains Partners
How Did GPP's Recent Performance Stack Up Against Its Past?
For the purpose of this commentary, I like to use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This technique allows me to analyze different companies on a more comparable basis, using the latest information. For Green Plains Partners, its latest earnings (trailing twelve month) is US$56.12M, which, in comparison to last year’s level, has declined by -3.92%. Since these figures are fairly myopic, I have estimated an annualized five-year figure for Green Plains Partners's net income, which stands at US$33.34M This means though earnings declined against the prior year, over the longer term, Green Plains Partners's profits have been growing on average.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors affecting its business. I recommend you continue to research Green Plains Partners to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for GPP’s future growth? Take a look at our free research report of analyst consensus for GPP’s outlook.
- Financial Health: Is GPP’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.
- 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.
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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.
About NasdaqGM:GPP
Green Plains Partners
Green Plains Partners LP provides fuel storage and transportation services in the United States.
Fair value with imperfect balance sheet.
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