Quarterly Revenue Growth

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What is 'Quarterly Revenue Growth'

Quarterly revenue growth is an increase of a company's sales when compared to a previous quarter's revenue performance. The current quarter's sales figure can be compared on a year-over-year basis or sequentially. This helps to give analysts, investors and participants an idea of how much a company's sales are increasing over time.

Explaining 'Quarterly Revenue Growth'

When looking at a company's quarterly or annual financials, it is not enough to just look at the revenue for the current period. When investing in a company, an investor wants to see it grow or improve over time. Looking at the financials in comparison to a previous quarter will give participants a much better idea of how well a company is doing.

For example, if Exxon Mobil generated $91.3 billion in revenue during its fourth quarter of 2005 and $82.2 billion in the third quarter that year, the company saw quarterly revenue growth of 11% sequentially. If Exxon Mobil generated $80.2 billion in the fourth quarter of 2004, the company would have seen its revenue increase 13.8% on a year-over-year basis.

Earnings momentum and earnings management
journals.sagepub.com [PDF]
… 426 firms (57% of the sample) report strings of twenty to twenty-seven quarters, 141 firms … split-adjusted EPS as Cornpustar quarterly data item 19 divided by Cornpustat quarterly data item 17. An increase is defined relative to the split-adjusted EPS from the same quarter of the …

Dividends, earnings volatility and information
www.tandfonline.com [PDF]
… 426 firms (57% of the sample) report strings of twenty to twenty-seven quarters, 141 firms … split-adjusted EPS as Cornpustar quarterly data item 19 divided by Cornpustat quarterly data item 17. An increase is defined relative to the split-adjusted EPS from the same quarter of the …

Predicting earnings management: The case of earnings restatements
papers.ssrn.com [PDF]
… 426 firms (57% of the sample) report strings of twenty to twenty-seven quarters, 141 firms … split-adjusted EPS as Cornpustar quarterly data item 19 divided by Cornpustat quarterly data item 17. An increase is defined relative to the split-adjusted EPS from the same quarter of the …

Characteristics of firms correcting previously reported quarterly earnings
www.sciencedirect.com [PDF]
… 426 firms (57% of the sample) report strings of twenty to twenty-seven quarters, 141 firms … split-adjusted EPS as Cornpustar quarterly data item 19 divided by Cornpustat quarterly data item 17. An increase is defined relative to the split-adjusted EPS from the same quarter of the …

How does internal control regulation affect financial reporting?
www.sciencedirect.com [PDF]
… 426 firms (57% of the sample) report strings of twenty to twenty-seven quarters, 141 firms … split-adjusted EPS as Cornpustar quarterly data item 19 divided by Cornpustat quarterly data item 17. An increase is defined relative to the split-adjusted EPS from the same quarter of the …

The effects of firm growth and model specification choices on tests of earnings management in quarterly settings
meridian.allenpress.com [PDF]
… 426 firms (57% of the sample) report strings of twenty to twenty-seven quarters, 141 firms … split-adjusted EPS as Cornpustar quarterly data item 19 divided by Cornpustat quarterly data item 17. An increase is defined relative to the split-adjusted EPS from the same quarter of the …

Earnings management and the performance of seasoned equity offerings
www.sciencedirect.com [PDF]
… 426 firms (57% of the sample) report strings of twenty to twenty-seven quarters, 141 firms … split-adjusted EPS as Cornpustar quarterly data item 19 divided by Cornpustat quarterly data item 17. An increase is defined relative to the split-adjusted EPS from the same quarter of the …

Quarterly earnings patterns and earnings management
onlinelibrary.wiley.com [PDF]
… 426 firms (57% of the sample) report strings of twenty to twenty-seven quarters, 141 firms … split-adjusted EPS as Cornpustar quarterly data item 19 divided by Cornpustat quarterly data item 17. An increase is defined relative to the split-adjusted EPS from the same quarter of the …

Earnings forecasting research: its implications for capital markets research
www.sciencedirect.com [PDF]
… 426 firms (57% of the sample) report strings of twenty to twenty-seven quarters, 141 firms … split-adjusted EPS as Cornpustar quarterly data item 19 divided by Cornpustat quarterly data item 17. An increase is defined relative to the split-adjusted EPS from the same quarter of the …

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Q&A About Quarterly Revenue Growth

When looking at financials, what should you look for in addition to the current period's revenue?

When looking at financials, it is not enough to just look at the revenue for the current period. When investing in a company, an investor wants to see it grow or improve over time. Looking at the financials in comparison to a previous quarter will give participants a much better idea of how well a company is doing.

What does "for example" mean?

For example shows that there are other examples besides Exxon Mobil that show quarterly revenue growth.

What is quarterly revenue growth?

Quarterly revenue growth is an increase of a company's sales when compared to a previous quarter's revenue performance.

Why would someone want to know annualized quarterly change instead of sequential change?

Investors may be more interested in seeing if their investment has grown annually rather than knowing whether it grew each and every month during that same time frame (i.e., they may be more interested in long term trends rather than short term fluctuations).

How do you calculate sequential quarterly revenue growth?

Sequential quarterly revenue growth is calculated by comparing this quarter’s revenues with last quarters' revenues from one year prior (i.e., Q4 25 vs Q3 24).

How do you calculate annualized quarterly revenue growth?

Annualized quarterly growth is calculated by multiplying sequential quarterly change by four (i .e., 11 x 4 = 44).

How can you compare current quarter sales on a year-over-year basis or sequentially?

You can compare the current quarter's sales figure on a year-over-year basis or sequentially. This helps analysts, investors and participants get an idea of how much a company's sales are increasing over time.

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