Revenue Growth

RECENT NEWS
The Hindu Business Line  7 hrs ago  Comment 
Despite modest revenue growth, the company’s profitability has improved
Motley Fool  Feb 5  Comment 
Modest revenue growth expected after the separation, but earnings look nice.
newratings.com  Feb 5  Comment 
CANCOM SE: Significant revenue growth with high earnings increase in the financial year 2015 DGAP-News: CANCOM SE / Key word(s): Preliminary Results CANCOM SE: Significant revenue growth with high earnings increase in the financial year...
MarketWatch  Feb 4  Comment 
Shares of Splunk Inc. and other next-generation cloud-software providers declined in the extended session Thursday after Tableau Software Inc.'s license revenue growth slowed. Splunk shares fell 12% to $41, as Tableau shares plummeted 46% to...
newratings.com  Feb 4  Comment 
GEA (dpa-AFX) - GEA (GEAGF.PK, GEAGY.PK) reported that preliminary EBIT for fiscal year 2015 declined 29.6% to 309.4 million euros from 439.9 million euros last year. Order intake was 4.590 billion euros, up from 4.520 billion euros in...
Motley Fool  Feb 2  Comment 
The pipeline could reaccelerate revenue growth.
Forbes  Feb 2  Comment 
The New York Times Company is set to report its fourth quarter earnings on Thursday, February 4th.  The company successfully increased its digital user base to over 1 million in 2015, causing circulation revenues to stabilize through the first...
Benzinga  Feb 2  Comment 
Alphabet Inc (NASDAQ: GOOGL) shares have been heading north over the past six months, and are trading close to the high end of their 52-week range of $521.72 - $798.69. B. Riley's Sameet Sinha and Stifel's Scott W. Devitt both maintained Buy...
Benzinga  Feb 2  Comment 
Shares of Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) have appreciated 43.39 percent over the past year, to a high of $793.96 on December 29. Axiom’s Victor Anthony has maintained a Buy rating on the company, while raising the price target...
The Hindu Business Line  Feb 2  Comment 
Shares of Bharti Airtel rose today on data revenue growth and as brokers have maintained ‘buy’ rating on the stock.The stock gained as much as 2.1 per cent to its highest since January 22.Bharti’s Dec...




RELATED WIKI ARTICLES
 

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.

Example

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
Q1$100m$104m$144m
Q2$120m$142m$120m
Q3$130m$140m
Q4$140m$170m

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