Should You Be Concerned With Cibox Inter@ctive’s (EPA:CIB) -23.08% Earnings Drop?
Ricardo Landis March 31, 2018
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 Cibox Inter@ctive (ENXTPA:CIB) useful as an attempt to give more color around how Cibox Inter@ctive is currently performing. Check out our latest analysis for Cibox Inter@ctive
Did CIB perform worse than its track record and industry?
I look at 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 technique enables me to assess different companies on a similar basis, using new information. For Cibox Inter@ctive, its most recent earnings (trailing twelve month) is €550.00K, which, relative to the prior year’s level, has dropped by -23.08%. Since these figures are fairly myopic, I have created an annualized five-year value for Cibox Inter@ctive’s earnings, which stands at €240.65K This means that while earnings growth was negative against the previous year, over the past couple of years, Cibox Inter@ctive’s earnings have been growing on average.
What’s the driver of this growth? Let’s see whether it is merely a result of industry tailwinds, or if Cibox Inter@ctive has seen some company-specific growth. In the past couple of years, Cibox Inter@ctive increased its bottom line faster than revenue by efficiently controlling its costs. This brought about a margin expansion and profitability over time. Inspecting growth from a sector-level, the FR tech industry has been growing, albeit, at a subdued single-digit rate of 5.45% in the previous year, and a substantial 12.44% over the last five years. This suggests that whatever tailwind the industry is benefiting from, Cibox Inter@ctive has not been able to gain as much as its average peer.