View Quarterly Earnings and Sales with Deepvue

Earnings and Sales Feature Image

Introduction

In this article, we'll explore how quarterly earnings and sales can serve as a navigational tool to help you find the highest quality, fastest growing companies to invest in.

Deepvue offers a clear picture of both Earnings and Sales Data for all stocks on the US Exchanges.

Quarterly Earnings and Sales in Deepvue's stats table

Quarterly Earnings

Quarterly earnings are a critical measure of profitability and refer to a company's net income for a specific three-month period, known as a fiscal quarter.

This figure represents the company's total revenue minus its expenses, taxes, and costs during that quarter.

Quarterly earnings are a critical measure of profitability. 

A company's ability to consistently generate positive earnings is often seen as a sign of financial stability and growth potential.

Quarterly Earnings and Sales example

Quarterly Sales

Quarterly sales, on the other hand, refer to the total revenue generated by a company during a fiscal quarter.

This figure represents the gross income from all sales of goods and services before any expenses are deducted.

Quarterly sales provide insights into a company's market demand, sales trends, and overall business activity.

Conversely, declining sales may signal challenges in the market or internal issues that need to be addressed.

Quarterly Earnings and Sales Data example

Calculating Quarterly Growth Year-over-Year

Year-over-year (YoY) growth is calculated by comparing a financial metric for a specific quarter with the same quarter in the previous year. This takes into account seasonality.

In the case of quarterly earnings and sales, this is calculated in the following way:

YoY Growth = (Current Quarter / Same Quarter Last Year – 1)  × 100%

For example, if a company's earnings for Q2 were $200,000 and the earnings for Q2 of the previous year were $100,000, the YoY growth would be 100%.

Here's a real life example of 50% growth.

Quarterly Earnings and Sales Data example
Quarterly Earnings and Sales Data example 50% growth 2023 Q2

Real-World Application: Triple-Digit Growth

William O'Neil's CANSLIM methodology looks for stocks with strong and growing quarterly earnings and sales on a Year-over-Year (YoY) basis. 

At a bare minimum, William O'Neil's studies show that the most recent quarter of EPS growth should be at least 25%. Ideally, the 3 most recent quarters should show accelerating growth.

However, many of O'Neil's biggest winners showed astounding, triple digit growth in EPS before and during their market moves.

Triple-digit growth is a term used to describe a situation where a company's earnings or sales have more than doubled compared to the same quarter in the previous year.

Triple-digit growth is a clear sign that a company is expanding rapidly and may be outperforming its competitors.

This is often seen as a strong indicator of a company's potential and in many cases, can translate into a powerful move by its stock.

Therefore, it can be a very useful way to help narrow down your watchlist to the very best stocks, especially when leadership is broad and everything appears to be working.

In Deepvue, you can easily scan for triple digit growth. Here is a screen to get you started:

Quarterly Earnings and Sales Data example screen in Deepvue

Quarterly Earnings & Sales using Deepvue

The Stats Table in Deepvue gives you quick access to Earnings and Sales Data for any stock you bring up. We note the reported number and underneath, the YoY growth.

Quarterly Earnings and Sales Data Stats Table
View Quarterly Earnings and Sales with Deepvue 12

The Stats table is scrollable from left to right and located right below your charts so you can quickly analyze both the technicals and fundamentals in one view.

You can hover over any reported quarter to see the % Surprise (Beat) and the raw numbers.

Quarterly Earnings and Sales Data example with estimates and surprise data

We also include extensive estimates for both EPS and Sales Growth many quarters ahead. You can see the growth runway that analysts and institutions are expecting.

We also show wether the estimates have been most recently updated upwards or downwards.

Quarterly Earnings and Sales Data example with estimates and surprise data
View Quarterly Earnings and Sales with Deepvue 13

Deepvue also inserts a flag next to every stock in a watchlist with upcoming earnings. You will always know and be ready for when they report.

Earnings Date upcoming alert

Finally you are able to screen for stocks using dozens of EPS and Sales related data points to fine tune your research.

Conclusion

In conclusion, Quarterly Earnings & Sales are key fundamental measures for understanding the growth potential of a stock.

Deepvue’s many fundamental data points, including Quarterly Earnings & Sales, make it easier than ever to find potential growth opportunities in the market.

Frequently Asked Questions (FAQs)

Many industries experience seasonality, which can influence sales and earnings. For instance, retailers might see a spike in Q4 due to holiday shopping. Investors should compare quarterly results year-over-year rather than sequentially to account for these fluctuations.

High sales don’t always translate to high earnings. Factors such as increased production costs, higher marketing expenses, or large one-time charges can reduce net earnings despite robust sales.

Macroeconomic events, like recessions, can depress consumer spending, affecting sales and earnings. Alternatively, economic booms might boost disposable income, leading to increased sales and potentially higher earnings.

Public companies are mandated to release their financial results, including quarterly earnings and sales. However, private companies aren't under the same obligation, though some may still choose to share this data with potential investors or other stakeholders.

While there are strict accounting guidelines, some companies might engage in “earnings management” to present their finances in the best light. It's crucial for investors to look beyond just the numbers, examining the quality of earnings.

Consistently meeting earnings expectations indicates stability, which conservative investors might appreciate. However, occasionally exceeding expectations can spark excitement and potentially drive stock prices higher, although it might also set higher expectations for future performance.

While these are key indicators, investors should also consider metrics like debt levels, cash flow, and industry-specific indicators to gain a holistic view of a company's financial health and potential.

Similar Posts