Arcturus Therapeutics Holdings Inc. (NASDAQ:ARCT) shareholders might be concerned after seeing the share price drop 17% in the last week. But over three years, the returns would have left most investors smiling In fact, the company's share price bested the return of its market index in that time, posting a gain of 94%.

Since the long term performance has been good but there's been a recent pullback of 17%, let's check if the fundamentals match the share price.

See our latest analysis for Arcturus Therapeutics Holdings

Arcturus Therapeutics Holdings 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last 3 years Arcturus Therapeutics Holdings saw its revenue shrink by 4.0% per year. Despite the lack of revenue growth, the stock has returned 25%, compound, over three years. If the company is cutting costs profitability could be on the horizon, but the revenue decline is a prima facie concern.

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

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. So we recommend checking out this free report showing consensus forecasts

A Different Perspective

The last twelve months weren't great for Arcturus Therapeutics Holdings shares, which performed worse than the market, costing holders 66%. The market shed around 10%, no doubt weighing on the stock price. Investors are up over three years, booking 25% per year, much better than the more recent returns. Sometimes when a good quality long term winner has a weak period, it's turns out to be an opportunity, but you really need to be sure that the quality is there. It's always interesting to track share price performance over the longer term. But to understand Arcturus Therapeutics Holdings better, we need to consider many other factors. For instance, we've identified 1 warning sign for Arcturus Therapeutics Holdings that you should be aware of.

But note: Arcturus Therapeutics Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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