Revenue Growth

RECENT NEWS  Aug 5  Comment 
NEW YORK (TheStreet) -- Year to date, shares of Michael Kors  , at close to $40, are down 47%. The stock hit a three-year low ahead of its first-quarter report on Thursday. While the stock could bounce, I can't see a reason to own it. ...  Aug 5  Comment 
NORWALK (dpa-AFX) - Online travel agency Priceline Group, Inc. (PCLN) reported Thursday a profit for the second quarter that declined from last year, despite revenue growth amid higher travel and room night bookings, hurt by higher charges and...  Aug 5  Comment 
Allgeier SE: Following a strong second quarter, Allgeier achieves double-digit total operating revenue growth in H1 2015 in its continuing operations ALLGEIER SE / Key word(s): Half Year Results 05.08.2015 13:11 Dissemination of an Ad hoc...
Wall Street Journal  Aug 5  Comment 
Discovery Communications Inc. reported Wednesday that its revenue grew less-than-expected because of currency headwinds and slowing international growth.
The Hindu Business Line  Aug 3  Comment 
HCL Tech has reported a broad- based revenue growth for the 2015 financial year (company follows July-June as its financial year), with margins the only thing playing spoil sport. In a tele...
Forbes  Aug 3  Comment 
Electronic Arts is off to a flying start in its fiscal 2016, as the company reported $0.15 in EPS in Q1 2016, beating the market estimates by $0.12. EA's sports title's category, which includes FIFA 15, Madden NFL 15, NHL, and UFC; as well as...
Wall Street Journal  Jul 31  Comment 
Newell Rubbermaid Inc. on Friday bumped up its guidance for the year as strong sales in its Sharpie and Paper Mate pen segment helped drive revenue growth in the second quarter.
The Times of India  Jul 31  Comment 
Shoppers Stop Ltd (SSL), India’s prominent retail group targets to achieve 10 percent revenue through digital-touch points over the next 10 years. The group plans to invest about Rs 60 crore over the next three years in the omni-channel...  Jul 31  Comment 
Nemetschek Group presents strong half-year figures: Revenue growth in the second quarter continues to accelerate DGAP-News: Nemetschek AG / Key word(s): Half Year Results Nemetschek Group presents strong half-year figures: Revenue growth in the...


Revenue Growth is the percent increase (or decrease) in a company's revenue between two or more equivalent fiscal periods

Revenue Growth is used to measure how fast a company's business is expanding. The figure shows the annual rate of increase/decrease in a company's revenue or sales growth. The figures give analysts, investors and participants an idea of how much a company's sales are increasing over time.

While revenue growth tends to fluctuate from fiscal year to fiscal year and fiscal quarter to fiscal quarter, investors look for trends in revenue growth as a means of gauging the company's growth over proscribed periods of time. All other things being equal, a company that is able to continually grow its revenue should see equivalent increases in net income.

Rate of Revenue Growth

Taking the derivative of the revenue growth gives you the rate of revenue growth, which tells you how much the rate of revenue growth is changing. Investors look at this figure to gauge a potential forthcoming change in earnings growth. If a company that has been able to consistently grow its revenues at some pace begins to see smaller revenue growth over one or more fiscal periods, it may be an indicator that the growth itself will continue to decrease over time, or that it has plateaued.


Company ABC generated $100 billion in revenue during its third quarter of 2005 and $120 billion in the fourth quarter that year, the company saw quarterly revenue growth of 20% sequentially.

If Company ABC generated $150 billion in the fourth quarter of 2004, the company would have seen its revenue increase 50% on a year-over-year basis

Revenue Growth Calculation on Wikinvest

Wikinvest calculates revenue growth as the growth of trailing twelve months of revenue. The treatment is different from Yahoo! Finance which calculates quarterly year-over-year growth. The following example will illustrate the difference:

' 2006 2007 2008

Q2 2008 is the most recent quarter. In this case, Yahoo! Finance would calculate revenue growth as -15.5% [(120-142)/142].

Wikinvest, on the other hand would calculate the growth as 11.2%. This is because wikinvest calculates the growth based on the revenue generated in the last twelve months. In this case, Q3 07, Q4 07, Q1 08 and Q2 08. Specially, it is calculated as:

Revenue growth = ((120+144+170+140)-(142+104+140+130))/(142+104+140+130) = 11.2%

Taking the growth based on trailing twelve months of revenue mitigates undue fluctuations that may affect a single quarter.

Please install Flash Player to view this chart.
Please install Flash Player to view this chart.
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki