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iBio Inc (NYSEMKT:IBIO): Does The Earnings Decline Make It An Underperformer?
Today I will examine iBio Inc's (AMEX:IBIO) latest earnings update (31 December 2017) and compare these figures against its performance over the past couple of years, in addition to how the rest of IBIO's industry performed. As a long-term investor, I find it useful to analyze the company's trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time. View our latest analysis for iBio
Was IBIO's recent earnings decline worse than the long-term trend and the industry?
I like to use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This method enables me to assess different stocks on a similar basis, using new information. For iBio, its most recent bottom-line (trailing twelve month) is -US$16.19M, which, against the previous year's level, has become more negative. Since these figures may be somewhat myopic, I have determined an annualized five-year figure for iBio's net income, which stands at -US$8.37M. This doesn’t seem to paint a better picture, since earnings seem to have consistently been getting more and more negative over time.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always hard to envisage what will occur going forward, and when. The most insightful step is to assess company-specific issues iBio may be facing and whether management guidance has steadily been met in the past. I recommend you continue to research iBio to get a better picture of the stock by looking at:
- 1. Financial Health: Is IBIO’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.
- 2. 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.
Valuation is complex, but we're here to simplify it.
Discover if iBio might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
About NasdaqCM:IBIO
iBio
A preclinical stage biotechnology company, engages in the development of artificial intelligence (AI) antibodies solutions for cancer, and other diseases.
Medium-low with adequate balance sheet.
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