Strong week for ADTRAN Holdings (NASDAQ:ADTN) shareholders doesn't alleviate pain of three-year loss

It is doubtless a positive to see that the ADTRAN Holdings, Inc. (NASDAQ:ADTN) share price has gained some 56% in the last three months. But that is small recompense for the exasperating returns over three years. Indeed, the share price is down a tragic 56% in the last three years. So the improvement may be a real relief to some. While many would remain nervous, there could be further gains if the business can put its best foot forward.

While the stock has risen 8.9% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

See our latest analysis for ADTRAN Holdings

Given that ADTRAN Holdings didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over three years, ADTRAN Holdings grew revenue at 21% per year. That is faster than most pre-profit companies. The share price has moved in quite the opposite direction, down 16% over that time, a bad result. This could mean hype has come out of the stock because the losses are concerning investors. But a share price drop of that magnitude could well signal that the market is overly negative on the stock.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

Take a more thorough look at ADTRAN Holdings' financial health with this free report on its balance sheet.

A Different Perspective

ADTRAN Holdings provided a TSR of 22% over the last twelve months. But that was short of the market average. But at least that's still a gain! Over five years the TSR has been a reduction of 0.1% per year, over five years. It could well be that the business is stabilizing. 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. Even so, be aware that ADTRAN Holdings is showing 1 warning sign in our investment analysis , you should know about...

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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.