For investors with a long-term horizon, assessing earnings trend over time and against industry benchmarks is more valuable than looking at a single earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on Atossa Genetics Inc (NASDAQ:ATOS) useful as an attempt to give more color around how Atossa Genetics is currently performing. Check out our latest analysis for Atossa Genetics
Was ATOS’s weak performance lately a part of a long-term decline?
For the most up-to-date info, I use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This allows me to assess many different companies on a more comparable basis, using the latest information. For Atossa Genetics, its most recent bottom-line (trailing twelve month) is -US$10.69M, which, in comparison to the prior year’s level, has become more negative. Since these values are fairly nearsighted, I have estimated an annualized five-year value for Atossa Genetics’s net income, which stands at -US$8.55M. This doesn’t seem to paint a better picture, since earnings seem to have gradually been getting more and more negative over time.We can further analyze Atossa Genetics’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Atossa Genetics has seen an annual decline in revenue of -40.04%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Looking at growth from a sector-level, the US medical equipment industry has been growing its average earnings by double-digit 10.69% in the prior twelve months, and 10.37% over the previous five years. This shows that any tailwind the industry is profiting from, Atossa Genetics has not been able to reap as much as its industry peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always difficult to forecast what will occur going forward, and when. The most insightful step is to examine company-specific issues Atossa Genetics may be facing and whether management guidance has dependably been met in the past. You should continue to research Atossa Genetics to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for ATOS’s future growth? Take a look at our free research report of analyst consensus for ATOS’s outlook.
- Financial Health: Is ATOS’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.