Measuring ProQR Therapeutics NV.’s (NASDAQ:PRQR) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess PRQR’s recent performance announced on 31 March 2018 and compare these figures to its historical trend and industry movements. Check out our latest analysis for ProQR Therapeutics
Was PRQR’s recent earnings decline worse than the long-term trend and the industry?
I prefer to use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This blend enables me to examine many different companies on a similar basis, using the latest information. For ProQR Therapeutics, its most recent earnings (trailing twelve month) is -€43.82M, which, relative to the previous year’s figure, has become more negative. Given that these values may be relatively myopic, I have determined an annualized five-year figure for ProQR Therapeutics’s earnings, which stands at -€23.75M. This doesn’t look much better, since earnings seem to have gradually been getting more and more negative over time.We can further examine ProQR Therapeutics’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years ProQR Therapeutics’s top-line has grown by 25.81% on average, signalling that the company is in a high-growth phase with expenses racing ahead revenues, leading to annual losses. Scanning growth from a sector-level, the US biotechs industry has been growing its average earnings by double-digit 21.75% over the previous twelve months, and 18.46% over the last five years. This shows that whatever tailwind the industry is benefiting from, ProQR Therapeutics has not been able to gain as much as its industry peers.
What does this mean?
ProQR Therapeutics’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 useful step is to examine company-specific issues ProQR Therapeutics may be facing and whether management guidance has consistently been met in the past. I suggest you continue to research ProQR Therapeutics to get a better picture of the stock by looking at:
- Financial Health: Is PRQR’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.