The one-year earnings decline has likely contributed toNetwork18 Media & Investments' (NSE:NETWORK18) shareholders losses of 42% over that period

Explore Network18 Media & Investments's Fair Values from the Community and select yours

While it may not be enough for some shareholders, we think it is good to see the Network18 Media & Investments Limited (NSE:NETWORK18) share price up 23% in a single quarter. But in truth the last year hasn't been good for the share price. In fact the stock is down 42% in the last year, well below the market return.

If the past week is anything to go by, investor sentiment for Network18 Media & Investments isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

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Because Network18 Media & Investments made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In just one year Network18 Media & Investments saw its revenue fall by 54%. That looks like a train-wreck result to investors far and wide. Meanwhile, the share price dropped by 42%. We would want to see improvements in the core business, and diminishing losses, before getting too excited about this one.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

If you are thinking of buying or selling Network18 Media & Investments stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We regret to report that Network18 Media & Investments shareholders are down 42% for the year. Unfortunately, that's worse than the broader market decline of 3.5%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. On the bright side, long term shareholders have made money, with a gain of 7% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 4 warning signs for Network18 Media & Investments (3 are significant) that you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Indian exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.