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Today I will take a look at Senseonics Holdings Inc’s (AMEX:SENS) most recent earnings update (31 December 2017) and compare these latest figures against its performance over the past few years, as well as how the rest of the medical equipment industry performed. As an investor, I find it beneficial to assess SENS’s trend over the short-to-medium term in order to gauge whether or not the company is able to meet its goals, and ultimately sustainably grow over time. See our latest analysis for Senseonics Holdings
Commentary On SENS’s Past Performance
For the purpose of this commentary, 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 blend allows me to assess different stocks in a uniform manner using new information. For Senseonics Holdings, its most recent bottom-line (trailing twelve month) is -US$59.10M, which, relative to the previous year’s figure, has become more negative. Since these values are fairly short-term, I have created an annualized five-year figure for SENS’s net income, which stands at -US$38.44M. This doesn’t seem to paint a better picture, since earnings seem to have gradually been getting more and more negative over time.
We can further assess Senseonics Holdings’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Senseonics Holdings’s top-line has increased by 99.80% on average, implying that the company is in a high-growth period with expenses racing ahead revenues, leading to annual losses. Eyeballing growth from a sector-level, the US medical equipment industry has been growing its average earnings by double-digit 11.06% over the past twelve months, and 10.37% over the past half a decade. This means whatever tailwind the industry is benefiting from, Senseonics Holdings has not been able to realize the gains unlike its average peer.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always difficult to predict what will happen in the future and when. The most valuable step is to assess company-specific issues Senseonics Holdings may be facing and whether management guidance has steadily been met in the past. I recommend you continue to research Senseonics Holdings to get a more holistic view of the stock by looking at:
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1. Future Outlook: What are well-informed industry analysts predicting for SENS’s future growth? Take a look at our free research report of analyst consensus for SENS’s outlook.
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2. Financial Health: Is SENS’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.
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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 trailing twelve months from 31 December 2017. 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.