Yahoo Finance Interested In Telenet Group Holding NV (EBR:TNET)? Here’s How It Performed Recently
When Telenet Group Holding NV’s (ENXTBR:TNET) announced its latest earnings (31 March 2018), I wanted to understand how these figures stacked up against its past performance. The two benchmarks I used were Telenet Group Holding’s average earnings over the past couple of years, and its industry performance. These are useful yardsticks to help me gauge whether or not TNET actually performed well. Below is a quick commentary on how I see TNET has performed. See our latest analysis for Telenet Group Holding
Was TNET’s weak performance lately a part of a long-term decline?
I like to use the ‘latest twelve-month’ data, 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 enables me to analyze various companies on a similar basis, using new information. For Telenet Group Holding, its latest earnings (trailing twelve month) is €78.52M, which, relative to the prior year’s figure, has taken a dive by a non-trivial -31.13%. Given that these figures are relatively nearsighted, I’ve determined an annualized five-year figure for TNET’s net income, which stands at €88.34M This doesn’t seem to paint a better picture, as earnings seem to have consistently been diminishing over the longer term.
Why could this be happening? Let’s examine what’s going on with margins and whether the whole industry is feeling the heat. Over the last few years, revenue growth has not been able to catch up, which indicates that Telenet Group Holding’s bottom line has been driven by unsustainable cost-reductions. Scanning growth from a sector-level, the BE media industry has been growing its average earnings by double-digit 19.33% in the prior year, and a more subdued 8.88% over the last five years. This shows that any uplift the industry is benefiting from, Telenet Group Holding has not been able to realize the gains unlike its average peer.
What does this mean?
Telenet Group Holding’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Generally companies that endure a drawn out period of decline in earnings are undergoing some sort of reinvestment phase with the aim of keeping up with the latest industry expansion and disruption. I suggest you continue to research Telenet Group Holding to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for TNET’s future growth? Take a look at our free research report of analyst consensus for TNET’s outlook.
Financial Health: Is TNET’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.
