Earnings growth

Earnings growth is the change in an entity's reported net income over a period of time. The measure is usually a period to period comparison, such as from quarter to quarter, from year to year, or a comparison of the current quarter's results to those of the same quarter last year. The concept can also be used to estimate growth in a future period over the current period. A high level of earnings growth is more likely to drive up the market price of a company's stock. Conversely, if the earnings growth rate declines, this can trigger a sell off by investors that drives down the stock price.