Revenue Growth

Benzinga  Nov 28  Comment 
The aggressive spending by Under Armour Inc (NYSE: UA) on endorsements could weigh on its margins while setting a high bar for revenue growth, according to a recent note from Stifel. The brokerage, which has a Hold rating on the stock, said...
The Hindu Business Line  Nov 27  Comment 
Meeting the April 1, 2017 deadline for rolling out the indirect tax may not be easy
Motley Fool  Nov 26  Comment 
Management recently released its preliminary outlook for the new year. After a year of strong business growth, will the strategy keep momentum rolling?
Benzinga  Nov 23  Comment 
Workday Inc (NYSE: WDAY) is scheduled to report if FYQ3 2017 on December 1 after market close. D.A. Davidson’s Jack Andrews maintains a Buy rating on the company, with a price target of $107. Q3 Expectations Andrews expects the...
The Hindu Business Line  Nov 22  Comment 
L&T’s revenue growth for the September quarter was led by its international operations. While the company’s power and heavy engineering segment put up a good show, its infrastructure segment — con...  Nov 22  Comment 
LONDON (dpa-AFX) - Intertek Group Plc (ITRK.L) said that it remains on track to deliver its 2016 target of robust revenue growth at constant currency with stable margin and strong cash generation. The company expects its Product related...
Motley Fool  Nov 18  Comment 
Sometimes, an earnings beat just isn't enough.
Automotive World  Nov 17  Comment 
Over half the businesses in the Asia-Pacific Economic Co-operation’s (APEC) 21 economies (53%) surveyed by PwC this year plan to increase their investments over the next 12 months. This is despite reporting fragile confidence in prospects for...
TechCrunch  Nov 16  Comment 
 For most of the past five years, investors in software companies prized revenue growth above all else. Investors were more than willing to overlook near-term profitability (or lack thereof) in favor of an acute focus on growth. As a result,...
Wall Street Journal  Nov 15  Comment 
The U.S. Postal Service reported a wider loss for the fiscal year ended Sept. 30 as growth in shipping and package volume boosted revenue but also led to higher spending.


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