Yahoo Finance Has ImmunoGen Inc (NASDAQ:IMGN) Improved Earnings Growth In Recent Times?
Understanding ImmunoGen Inc’s (NASDAQ:IMGN) performance as a company requires examining more than earnings from one point in time. Today I will take you through a basic sense check to gain perspective on how ImmunoGen is doing by evaluating its latest earnings with its longer term trend as well as its industry peers’ performance over the same period. View our latest analysis for ImmunoGen
How Did IMGN’s Recent Performance Stack Up Against Its Past?
I prefer to use 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 many different companies in a uniform manner using new information. For ImmunoGen, its most recent earnings (trailing twelve month) is -US$117.28M, which, against last year’s figure, has become less negative. Given that these figures may be somewhat myopic, I’ve created an annualized five-year figure for ImmunoGen’s net income, which stands at -US$89.30M. This means that, ImmunoGen has historically performed better than recently, even though it seems like earnings are now heading back towards a more favorable position once more.
We can further evaluate ImmunoGen’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade ImmunoGen’s top-line has risen by 20.40% on average, implying that the company is in a high-growth period with expenses racing ahead revenues, leading to annual losses. Viewing growth from a sector-level, the US biotechs industry has been growing its average earnings by double-digit 21.75% over the past twelve months, and 17.77% over the past five years. This means any uplift the industry is benefiting from, ImmunoGen has not been able to reap as much as its average peer.
What does this mean?
Though ImmunoGen’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 envisage what will happen in the future and when. The most useful step is to examine company-specific issues ImmunoGen may be facing and whether management guidance has steadily been met in the past. You should continue to research ImmunoGen to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for IMGN’s future growth? Take a look at our free research report of analyst consensus for IMGN’s outlook.
Financial Health: Is IMGN’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.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2018. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
