Champions Oncology Earnings Perspective: Return On Capital Employed
Portfolio Pulse from Benzinga Insights
Champions Oncology (NASDAQ:CSBR) reported Q4 sales of $13.07 million, but earnings decreased by 5.0%, resulting in a loss of $2.56 million. The company's Return on Capital Employed (ROCE) was -0.55%, suggesting ineffective capital allocation. The Q4 earnings per share were $-0.17, missing analyst predictions of $-0.12.
July 25, 2023 | 2:47 pm
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NEGATIVE IMPACT
Champions Oncology's Q4 earnings report shows a decrease in earnings and a negative ROCE, suggesting ineffective capital allocation. The company also missed analyst EPS predictions.
The decrease in earnings and negative ROCE indicate that Champions Oncology may not be effectively using its capital. This, combined with the missed analyst EPS predictions, could negatively impact investor confidence and potentially lead to a decrease in the company's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100