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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 ATN International Limited (NSEI:ATNINTER) useful as an attempt to give more color around how ATN International is currently performing. View our latest analysis for ATN International
Did ATNINTER perform worse than its track record and industry?
To account for any quarterly or half-yearly updates, I 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 blend allows me to examine many different companies in a uniform manner using new information. For ATN International, its latest trailing-twelve-month earnings is -₹7.42M, which, against the prior year’s figure, has become more negative. Given that these figures may be somewhat short-term thinking, I have determined an annualized five-year figure for ATN International’s earnings, which stands at -₹13.02M. This shows that, despite the fact that net income is negative, it has become less negative over the years.
We can further evaluate ATN International’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years ATN International has seen an annual decline in revenue of -28.68%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Viewing growth from a sector-level, the IN capital markets industry has been growing its average earnings by double-digit 28.89% in the previous twelve months, and 17.33% over the previous five years. This shows that any uplift the industry is benefiting from, ATN International 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 hard to predict what will occur going forward, and when. The most insightful step is to examine company-specific issues ATN International may be facing and whether management guidance has consistently been met in the past. I recommend you continue to research ATN International to get a more holistic view of the stock by looking at:
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Financial Health: Is ATNINTER’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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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.