Viad's (NYSE:VVI) earnings trajectory could turn positive as the stock spikes 18% this past week

Viad Corp (NYSE:VVI) shareholders should be happy to see the share price up 18% in the last week. But if you look at the last five years the returns have not been good. After all, the share price is down 45% in that time, significantly under-performing the market.

The recent uptick of 18% could be a positive sign of things to come, so let's take a look at historical fundamentals.

See our latest analysis for Viad

Given that Viad only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.

In the last half decade, Viad saw its revenue increase by 1.0% per year. That's far from impressive given all the money it is losing. Given this fairly low revenue growth (and lack of profits), it's not particularly surprising to see the stock down 8% (annualized) in the same time frame. Investors should consider how bad the losses are, and whether the company can make it to profitability with ease. It could be worth putting it on your watchlist and revisiting when it makes its maiden profit.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

It is of course excellent to see how Viad has grown profits over the years, but the future is more important for shareholders. If you are thinking of buying or selling Viad stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that Viad shareholders have received a total shareholder return of 38% over one year. There's no doubt those recent returns are much better than the TSR loss of 8% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 2 warning signs for Viad (1 is a bit unpleasant!) that you should be aware of before investing here.

Of course Viad may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com