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

How fast profit per share grew over the last 4 quarters vs. the 4 before. Diluted EPS summed over the last four reported quarters compared with the sum of the four quarters before, as the change divided by the size of the earlier total (the absolute value method). A loss turning into a profit, or a loss shrinking, counts as growth. More current than the annual figure and smoother than a single quarter. Summing quarterly diluted EPS is the standard approximation; share-count changes make it differ slightly from trailing net income divided by diluted shares.

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

TTM EPS growth = (diluted EPS summed over the last 4 quarters − the sum over the 4 quarters before) ÷ |the sum over the 4 quarters before|

A company that earned $2.20 per share over the last four quarters, against $2.00 over the four before, has trailing 12-month EPS growth of 10%. The numbers are made up for illustration.

A higher figure means earnings per share are growing faster. Because each side adds up four quarters, seasons cancel out and one unusual quarter counts for only a quarter of the result. It updates after every quarterly report, unlike annual EPS growth.

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

• Adding up quarterly diluted EPS is the standard approximation of trailing EPS. Changes in share count make it differ slightly from trailing net income divided by diluted shares.
• It needs eight consecutive quarterly reports. It is blank for recent listings, companies that report twice a year and companies whose filings have gaps.
• Growth after a weak stretch is easy: a recovery can look dramatic.
• Capped at ±1000%, and blank when the earlier four quarters added up to exactly zero.

How Stock Meadow handles gaps. Usually blank when eight consecutive quarters of results aren't available (a recent listing, a company that reports twice a year, or a gap in its filings), or the earlier four quarters added up to 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 (Quarterly): how fast profit per share grew in the latest quarter vs. a year earlier.
• P/E Ratio (Price-to-Earnings): what you pay for each dollar of profit.
• Forward PEG Ratio: price vs. profit, adjusted for expected growth.

How is trailing 12-month EPS growth different from annual EPS growth?

Annual EPS growth compares the last full fiscal year with the one before, so it changes once a year. Trailing 12-month growth rolls forward with every quarterly report, comparing the last four quarters with the four before, so it always reflects the latest reported quarter.

Should I use the quarterly or the trailing 12-month version?

The quarterly version reacts fastest but one odd quarter can swing it. The trailing 12-month version is steadier. Many investors look at both.

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

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

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

It is usually blank when eight consecutive quarters of results aren't available (a recent listing, a company that reports twice a year, or a gap in its filings), or the earlier four quarters added up to exactly zero. Stock Meadow leaves the figure blank rather than guessing it.