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Blue Bird Corporation (NASDAQ:BLBD) shareholders should be happy to see the share price up 21% in the last month. But that's small comfort given the dismal price performance over the last year. During that time the share price has sank like a stone, descending 55%. So the bounce should be viewed in that context. Of course, it could be that the fall was overdone.
On a more encouraging note the company has added US$43m to its market cap in just the last 7 days, so let's see if we can determine what's driven the one-year loss for shareholders.
View our latest analysis for Blue Bird
Blue Bird isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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 Blue Bird saw its revenue fall by 5.3%. That looks pretty grim, at a glance. In the absence of profits, it's not unreasonable that the share price fell 55%. Fingers crossed this is the low ebb for the stock. We don't generally like to own companies with falling revenues and no profits, so we're pretty cautious of this one, at the moment.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
Take a more thorough look at Blue Bird's financial health with this free report on its balance sheet.
A Different Perspective
While the broader market lost about 11% in the twelve months, Blue Bird shareholders did even worse, losing 55%. 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. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 7% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. 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 instance, we've identified 2 warning signs for Blue Bird (1 is significant) that you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.