Revenue Growth

Financial Times  8 hrs ago  Comment 
Price comparison website sees shares rise after strong revenue growth
Forbes  9 hrs ago  Comment 
For Delta to live up to its investors' year-end expectations and achieve positive unit revenue growth, rising average fare prices are necessary. Other than simply hoping this happens, what can Delta do?
The Economic Times  10 hrs ago  Comment 
Infosys will need to deliver sequential revenue growth of at least 4-6% for the Q1 if the company wants a realistic shot at its ambitious full-year target.
OilVoice  Jul 14  Comment 
Northcote Energy Limited is pleased to update the market regarding the latest developments at Shoats Creek which is now poised to deliver revenue growth and positive operational cash flow. Highligh  Jul 14  Comment 
DUBLIN (dpa-AFX) - Experian plc (EXPN.L), an information services company, in its trading update, reported that its first-quarter total revenue from continuing activities was up 1% amid weakness in sterling and in the Brazilian real. Total revenue...
Wall Street Journal  Jul 13  Comment 
The U.S. government’s budget deficit widened in June to its highest level in two years, as revenue growth continues to slow.
Forbes  Jul 12  Comment 
Seeking to improve customer experiences as well as revenue growth in the burgeoning takeout category, supermarkets are hiring trained chefs – or in the case of Kroger Co., training their own. Essential to success is ensuring that customers feel...
Forbes  Jul 10  Comment 
38% of enterprise IT organizations have adopted cloud computing, projected to increase to 45% by 2019. Enterprises with very high trust in cloud technology overall cite a 9.1% profit rise versus 1% by the low-trust group. 62% of respondents...
The Economic Times  Jul 7  Comment 
The analysis is based on 600 companies (excluding financials and oil & gas) that account for about 70 per cent of the market capitalisation of the NSE, it said.  Jul 6  Comment 
LONDON (dpa-AFX) - Construction company Carillion Plc. (CLLN.L) Wednesday said is continues to expect first-half performance to be led by revenue and margin growth in support services. Overall, the company remains on track to make further progress...


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