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The Altimmune (NASDAQ:ALT) Share Price Has Soared 339%, Delighting Many Shareholders

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It hasn't been the best quarter for Altimmune, Inc. (NASDAQ:ALT) shareholders, since the share price has fallen 21% in that time. But over the last year the share price has taken off like one of Elon Musk's rockets. Indeed, the share price is up a whopping 339% in that time. So we wouldn't blame sellers for taking some profits. The real question is whether the fundamental business performance can justify the strong increase over the long term.

See our latest analysis for Altimmune

Altimmune wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect 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.

Altimmune grew its revenue by 41% last year. That's a fairly respectable growth rate. Arguably it's more than reflected in the truly wondrous share price gain of 339% in the last year. We're always cautious when the share price is up so much, but there's certainly enough revenue growth to justify taking a closer look at Altimmune.

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

earnings-and-revenue-growth
earnings-and-revenue-growth

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

A Different Perspective

It's nice to see that Altimmune shareholders have gained 339% (in total) over the last year. What is absolutely clear is that is far preferable to the dismal 8% average annual loss suffered over the last three years. It could well be that the business has turned around -- or else regained the confidence of investors. It's always interesting to track share price performance over the longer term. But to understand Altimmune better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Altimmune (of which 1 doesn't sit too well with us!) you should know about.

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 US exchanges.

This article by Simply Wall St is general in nature. 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 (at) simplywallst.com.