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 Arbutus Biopharma Corporation’s (NASDAQ:ABUS) 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. View our latest analysis for Arbutus Biopharma
Commentary On ABUS’s Past Performance
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 method enables me to assess various companies in a uniform manner using the most relevant data points. For Arbutus Biopharma, its latest trailing-twelve-month earnings is -US$267.18M, which, relative to the prior year’s figure, has become more negative. Since these values may be fairly myopic, I have determined an annualized five-year figure for Arbutus Biopharma’s net income, which stands at -US$75.32M. This doesn’t look much better, as earnings seem to have consistently been getting more and more negative over time.We can further assess Arbutus Biopharma’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Arbutus Biopharma has seen an annual decline in revenue of -11.08%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Eyeballing growth from a sector-level, the US biotechs industry has been growing its average earnings by double-digit 24.94% in the previous twelve months, and 20.47% over the past five. This means that any uplift the industry is enjoying, Arbutus Biopharma has not been able to leverage it as much as its industry peers.
What does this mean?
Arbutus Biopharma’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 difficult to predict what will occur going forward, and when. The most insightful step is to examine company-specific issues Arbutus Biopharma may be facing and whether management guidance has dependably been met in the past. You should continue to research Arbutus Biopharma to get a better picture of the stock by looking at:
- 1. Future Outlook: What are well-informed industry analysts predicting for ABUS’s future growth? Take a look at our free research report of analyst consensus for ABUS’s outlook.
- 2. Financial Health: Is ABUS’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.