EPS Growth (Quarterly): formula and how to read it

How fast profit per share grew in the latest quarter vs. a year earlier. Latest reported quarter's diluted EPS compared with the same quarter a year earlier (not the previous quarter, so seasonal swings don't distort it), as the change divided by the size of the earlier figure (the absolute value method). A loss turning into a profit, or a loss shrinking, counts as growth. The most current of the three EPS growth measures, but a single quarter can be noisy.

Stock Meadow groups it under Growth, and shows it in tables as EPS growth (Q).

Quarterly EPS growth = (latest quarter's diluted EPS − diluted EPS of the same quarter a year earlier) ÷ |diluted EPS of the same quarter a year earlier|

A company that earned $0.50 per share in the latest quarter, against $0.40 in the same quarter last year, has quarterly EPS growth of 25%. A loss of $0.20 per share turning into a profit of $0.10 counts as growth of 150%. The numbers are made up for illustration.

A higher figure means earnings per share are growing faster right now. The comparison is with the same quarter last year, not the previous quarter, so seasonal businesses such as retailers are not penalised for a quiet quarter. For a smoother view, look at EPS growth over the trailing 12 months.

When Stock Meadow ranks stocks, a higher figure scores better.

• One quarter can be distorted by one-off gains, write-downs or tax effects, so a single reading can mislead.
• Growth after a weak quarter is easy: a recovery can look dramatic.
• It needs a clean run of quarterly reports. It is blank for companies that report twice a year, or whose filings have gaps, rather than compare mismatched periods.
• Capped at ±1000%, and blank when the earlier quarter's EPS was exactly zero.

How Stock Meadow handles gaps. Usually blank when there's no matching quarter a year earlier to compare with (a recent listing, a company that reports twice a year, or a gap in its filings), or earnings per share in that quarter were exactly zero. Extreme values are capped at 1000%+.

Treat any single metric as one clue, and read the company's financial statements before drawing a conclusion. Stock Meadow's figures are research tools based on reported data, not investment advice.

In Weighted ranking, Z-score composite and Balanced (no weak link), you choose the metrics and weights yourself, so you can include it in a custom score.

No fixed-recipe model scores it.

Read about every scoring model on the scoring models page.

• EPS Growth (Annual): how fast profit per share grew in the last fiscal year; changes once a year.
• EPS Growth (TTM): how fast profit per share grew over the last 4 quarters vs. the 4 before.
• Revenue Growth: how fast sales grew last year.
• Forward PEG Ratio: price vs. profit, adjusted for expected growth.

Why compare with the same quarter last year rather than the previous quarter?

Most businesses have seasons: retailers earn most in the holiday quarter, for example. Comparing with the previous quarter would mostly measure the calendar, while the same quarter a year earlier measures real change.

How is quarterly EPS growth different from annual EPS growth?

Quarterly EPS growth uses only the latest quarter, so it reacts to every earnings report but can be noisy. Annual EPS growth compares full fiscal years and changes once a year; trailing 12-month EPS growth sits between the two.

Is a higher or lower EPS growth (Q) better?

When Stock Meadow ranks stocks, a higher figure scores better. That is a ranking convention, so read EPS growth (Q) alongside other measures and compare similar companies.

Why is EPS growth (Q) blank for some stocks?

It is usually blank when there's no matching quarter a year earlier to compare with (a recent listing, a company that reports twice a year, or a gap in its filings), or earnings per share in that quarter were exactly zero. Stock Meadow leaves the figure blank rather than guessing it.