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.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.