释义 |
Earnings momentum Earnings momentumAn increase in the earnings per share growth rate from one reporting period to the next.Earnings MomentumYear-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. |