For investors with a long-term horizon, examining earnings trend over time and against industry peers is more insightful than looking at an earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on Ahsay Backup Software Development Company Limited (SEHK:8290) useful as an attempt to give more color around how Ahsay Backup Software Development is currently performing. See our latest analysis for Ahsay Backup Software Development

Did 8290 beat its long-term earnings growth trend and its industry?

For the most up-to-date info, I 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 enables me to examine various companies on a similar basis, using new information. For Ahsay Backup Software Development, its most recent trailing-twelve-month earnings is -HK$8.53M, which, relative to the previous year’s level, has become less negative. Since these values are fairly short-term, I’ve estimated an annualized five-year value for Ahsay Backup Software Development’s net income, which stands at HK$9.62M.

We can further examine Ahsay Backup Software Development’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Ahsay Backup Software Development’s revenue growth has been somewhat subdued, with an annual growth rate of 0.14%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Viewing growth from a sector-level, the HK internet industry has been ramping up average earnings growth of 52.78% over the past twelve months, and a robust 13.19% over the past five. This means that whatever tailwind the industry is profiting from, Ahsay Backup Software Development has not been able to reap as much as its industry peers.

What does this mean?

Though Ahsay Backup Software Development’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 forecast what will happen in the future and when. The most valuable step is to examine company-specific issues Ahsay Backup Software Development may be facing and whether management guidance has steadily been met in the past. You should continue to research Ahsay Backup Software Development to get a more holistic view of the stock by looking at the areas below. Just a heads up – to access some parts of the Simply Wall St research tool you might be asked to create a free account, but it takes just one click and the information they provide is definitely worth it in my opinion.