Measuring Bellicum Pharmaceuticals Inc’s (NASDAQ:BLCM) track record of past performance is a useful exercise for investors. It enables us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess BLCM’s recent performance announced on 30 September 2017 and weigh these figures against its long-term trend and industry movements. See our latest analysis for Bellicum Pharmaceuticals
Commentary On BLCM’s Past Performance
I look at 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 method allows me to assess different companies on a more comparable basis, using the latest information. For Bellicum Pharmaceuticals, its latest earnings (trailing twelve month) is -$89.8M, which compared to the prior year’s level, has become more negative. Since these values are fairly short-term thinking, I have calculated an annualized five-year figure for BLCM’s earnings, which stands at -$57.8M. This doesn’t seem to paint a better picture, as earnings seem to have gradually been getting more and more negative over time.We can further analyze Bellicum Pharmaceuticals’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Bellicum Pharmaceuticals has seen an annual decline in revenue of -49.61%, 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 biotechs industry has been growing its average earnings by double-digit 12.33% in the past year, and 19.86% over the past five years. This shows that whatever tailwind the industry is enjoying, Bellicum Pharmaceuticals has not been able to reap as much as its average peer.
What does this mean?
Though Bellicum Pharmaceuticals’s past data is helpful, it is only one aspect of my investment thesis. With companies that are currently loss-making, it is always difficult to predict what will happen in the future and when. The most valuable step is to examine company-specific issues Bellicum Pharmaceuticals may be facing and whether management guidance has consistently been met in the past. You should continue to research Bellicum Pharmaceuticals to get a more holistic view of the stock by looking at:
- 1. Future Outlook: What are well-informed industry analysts predicting for BLCM’s future growth? Take a look at our free research report of analyst consensus for BLCM’s outlook.
- 2. Financial Health: Is BLCM’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.