Revenue Growth

Financial Times  7 hrs ago  Comment 
Boost from strong demand for new iPhone 7 and rapid growth in services business
The Economic Times  Oct 25  Comment 
ZEEL’s consolidated operating profit (EBITDA) for the quarter was up 36.4 per cent to Rs 489.2 crore, while EBITDA margin stood at 28.9%.
The Economic Times  Oct 25  Comment 
The company has maintained its guidance of a 12%-14% CC revenue growth guidance and 19.5-20.5% EBIT margins in FY17.
Benzinga  Oct 24  Comment, Inc. (NASDAQ: AMZN) is scheduled to announce its Q3 results Thursday. Cantor Fitzgerald analysts Youssef Squali, Naved Khan and Kip Paulson shared a preview of the upcoming results. The analysts anticipate revenue growth of roughly...
The Economic Times  Oct 23  Comment 
Incumbents are likely to be stung by declining data realisations and a continuing slowdown in data revenue growth, amid some effect of Jio’s launch.
The Hindu Business Line  Oct 21  Comment 
HCL Technologies has reported a strong set of numbers for the September quarter. Sequential revenue growth in constant currency terms was 2.8 per cent. In dollar terms, the sequential revenue growth w...
Reuters  Oct 21  Comment 
HCL Technologies Ltd, India's fourth-biggest software services firm, reported on Friday second-quarter profit rose better than expected and maintained its revenue growth forecast for the year, allaying concerns of a slowdown in client spending.
Forbes  Oct 20  Comment 
Online payments firm PayPal reported third quarter earnings on Thursday that matched analysts' expectations for profit and revenue growth.
Wall Street Journal  Oct 20  Comment 
Nestlé reported subdued sales growth and said it would fall short of a key revenue growth benchmark for a fourth straight year.


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.

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