Athabasca Oil (OTC:ATHOF) (TSE: ATH) has witnessed a remarkable growth in its earnings per share (EPS) over the past three years. However, investors are cautioned that using this data to predict long-term estimates could be misleading. In the past year, the company's EPS surged from CA$0.77 to CA$1.11, marking an impressive gain of 44%.
In addition to EPS, changes in a company's revenue and earnings before interest and tax (EBIT) margins can serve as indicators of its growth. Athabasca Oil's EBIT margins improved by 4.2 percentage points over the past year, reaching 16%. This is a significant achievement, notwithstanding a decrease in the company's revenue by 8% during the same period.
Insider buying often acts as a marker of confidence within companies. The practice suggests that those closest to the company believe in its potential for growth. However, it is important to note that small insider purchases may not always signal strong conviction, and insiders don't always make accurate predictions.
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