Earnings momentum

Earnings momentum

An increase in the earnings per share growth rate from one reporting period to the next.

Earnings Momentum

Year-on-year growth in earnings per share, usually sustained over a number of years. There does not need to be a particular pattern to the rate of growth in different years; all that is needed is for growth to be sustained. High earnings momentum often leads to increases in share price as investors tend to believe companies with earnings momentum have achieved relatively sustainable growth. Negative earnings momentum is also possible, with steady, year-on-year decreases in growth.

earnings momentum

The increase of earnings per share at an increasing rate. For example, a company is said to have earnings momentum if its reported earnings per share increases 10%, 15%, and 25% in successive years.

Earnings momentum.

When a company's earnings per share grow from year to year at an ever-increasing rate, that pattern is described as earnings momentum. One example might be a company whose earnings grow one year at 10%, the next year at 18%, and a third year at 25%.

In many cases, this momentum triggers an increase in the stock's share price as well, because investors identify the stock as one they expect to continue to grow and increase in value.

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Hootan Yazhari continued, "As our most preferred attractively valued GCC market, the UAE offers long term potential and healthy earnings momentum. UAE is the only market with net earnings upgrades Year-To-Date, and our top picks are Etisalat, Emaar and ADCB.
Qatar has displayed resilient earnings momentum, even in the face of the global financial crisis, as high levels of government expenditure have kept growth in non-oil GDP at robust levels.
"Our solid first quarter results demonstrate the consistency of our earnings momentum driven by the business strategies which we implemented last year," said Hussain Al Qemzi, CEO of Noor Bank, and Group CEO of Noor Investment Group.
In sum, these changes strengthen our organization and position Enterprise for further growth and continuing earnings momentum in our core banking business.
The agency said that the bank's strong franchise should support the core level of earnings momentum.
But valuation is only one factor: we are also beginning to see sentiment slip as earnings momentum, and very recent price action, has moved away from these previous market leaders.
"Despite the good price performance and premium we continue to see further upside in the share price with positive earnings momentum a key feature."
'Our revenue and earnings momentum continues to be driven by new product introductions and investment in our sales force,' chief executive Sir Christopher O'Donnell said in a statement.
"We're lowering our rating on Rite Aid's stock from 'attractively priced' to 'reasonably priced' (a market performer for the next several quarters) based on concerns regarding future prescription pricing, the growth of third-party plans, further gross margin erosion, and its lack of earnings momentum," notes PNC Institutional Investment Service retail analyst L.R.
The analyst is also positive on the company's turnaround efforts, with restructuring in its SBA lending business "starting to bear fruit" and producing loan originations and earnings momentum in 2018 and beyond.
The positive earnings momentum in the first quarter was further reflected by the 11-percent sequential growth from the strong fourth quarter results in 2014.
"Our solid first quarter results demonstrate the consistency of our earnings momentum driven by the business strategies which we implemented last year" said Hussain Al Qemzi, CEO, Noor Bank and Group CEO, Noor Investment Group.