Did uniQure NV’s (NASDAQ:QURE) Earnings Growth Outperform The Industry?

Investors with a long-term horizong may find it valuable to assess uniQure NV’s (NASDAQ:QURE) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. Below is my commentary, albiet very simple and high-level, on how uniQure is currently performing. View our latest analysis for uniQure

How Did QURE’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 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 blend allows me to analyze various companies on a more comparable basis, using the most relevant data points. For uniQure, its most recent earnings is -$66.5M, which, against last year’s figure, has become less negative. Given that these figures are relatively short-term, I’ve created an annualized five-year value for uniQure’s earnings, which stands at -$47.3M. This shows that, uniQure has historically performed better than recently, despite the fact that it seems like earnings are now heading back towards to right direction again.

NasdaqGS:QURE Income Statement Dec 22nd 17
NasdaqGS:QURE Income Statement Dec 22nd 17
Additionally, we can examine uniQure’s loss by looking at what has been happening in the industry as well as within the company. First, I want to quickly look into the line items. Revenue growth over the last few years has increased by 39.87%, implying that uniQure is in a high-growth phase with expenses shooting ahead of elevated top-line growth rates, leading to yearly losses. Inspecting growth from a sector-level, the US biotechnology industry has been growing its average earnings by double-digit 11.07% in the previous year, and 20.18% over the previous five years. This suggests that, although uniQure is currently running a loss, it may have been aided by industry tailwinds, moving earnings into a more favorable position.

What does this mean?

Though uniQure’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 useful step is to assess company-specific issues uniQure may be facing and whether management guidance has regularly been met in the past. I recommend you continue to research uniQure to get a better picture of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for QURE’s future growth? Take a look at our free research report of analyst consensus for QURE’s outlook.

2. Financial Health: Is QURE’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.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.