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Strong sales growth is key for share outperformance.
PLTR, HOOD, and W are all seeing favorable top-line trends.
The outlook for each remains favorable, underpinned by positive revisions.
Revenue growth is the foundation of profits. Strong top-line trends enable companies to scale, operate more efficiently, reinvest in the business, and steadily build shareholder value.
In recent months, several companies – Wayfair (W - Free Report) , Robinhood (HOOD - Free Report) , and Palantir (PLTR - Free Report) – have reported quarterly results showing accelerating sales growth. Companies showing this favorable trend often see their shares benefit as a result, also regularly seeing upward sales revisions.
Wayfair Enjoys Momentum
Wayfair posted a double-beat against our headline expectations in its latest release, with adjusted EPS of $0.70 climbing 220% year-over-year and sales of $3.1 billion growing 8.1%. The company’s YoY sales growth rates have turned around nicely.
Image Source: Zacks Investment Research
Wayfair’s orders delivered grew by more than 5% year-over-year, with new orders now increasing in the mid-single digits in back-to-back periods. The company has now penciled in a few sizable beats concerning Orders Delivered, reflecting the above-mentioned momentum.
Image Source: Zacks Investment Research
Analysts have bullishly raised their current-year sales expectations for the company. Sales are forecasted to grow nearly 5% YoY in its current fiscal year, the first positive change since 2020.
Image Source: Zacks Investment Research
Palantir Breaks Records (Again)
Quarterly sales of $1.2 billion in Palantir’s release reflected a record, climbing 63% from the year-ago period. Growth was broad-based, with US commercial revenue surging 121% YoY and US government revenue shooting 52% higher.
Below is a chart illustrating the company’s YoY revenue growth rates, expressed as a percentage, on a quarterly basis.
Image Source: Zacks Investment Research
PLTR inked many lucrative deals throughout the period, also closing a record-setting $2.8 billion in Total Contract Value (TCV), up 340% from the same period last year. And to top it off, Customer count grew by 45% YoY.
Analysts have raised their current-year sales expectations in a big way for PLTR, with sales expected to climb 54% year-over-year.
Image Source: Zacks Investment Research
HOOD Reports Surging Activity
Robinhood’s latest quarterly results broke records across several key metrics, also crushing our consensus EPS and sales estimates. Sales grew an impressive 100% year-over-year to a record $1.3 billion, whereas adjusted EPS soared 260%.
Net deposits of $20 billion reflected a quarterly record, with average revenue per user (ARPU) also climbing 82% year-over-year. Activity was broadly strong across its platform, with crypto, options, and equities revenues climbing 300%, 50%, and 86%, respectively.
Below is a chart illustrating the company’s YoY revenue growth rates, expressed as a percentage, on a quarterly basis.
Image Source: Zacks Investment Research
Sales expectations have followed a very bullish path, with HOOD expected to see 82% YoY revenue growth in its current fiscal year.
Image Source: Zacks Investment Research
Bottom Line
Strong sales growth leads to many obvious benefits, as it’s the foundation of generating profits. Above-average top line trends often lead to stock outperformance, as it’s commonly a reflection of red-hot demand, such as we’ve seen with Palantir (PLTR - Free Report) and Robinhood (HOOD - Free Report) . And in the case of Wayfair (W - Free Report) , the top-line turnaround reflects a key inflection point for the company, suggesting that a very tough period may now be in the rearview.
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3 Companies Enjoying Snowballing Sales Growth
Key Takeaways
Revenue growth is the foundation of profits. Strong top-line trends enable companies to scale, operate more efficiently, reinvest in the business, and steadily build shareholder value.
In recent months, several companies – Wayfair (W - Free Report) , Robinhood (HOOD - Free Report) , and Palantir (PLTR - Free Report) – have reported quarterly results showing accelerating sales growth. Companies showing this favorable trend often see their shares benefit as a result, also regularly seeing upward sales revisions.
Wayfair Enjoys Momentum
Wayfair posted a double-beat against our headline expectations in its latest release, with adjusted EPS of $0.70 climbing 220% year-over-year and sales of $3.1 billion growing 8.1%. The company’s YoY sales growth rates have turned around nicely.
Image Source: Zacks Investment Research
Wayfair’s orders delivered grew by more than 5% year-over-year, with new orders now increasing in the mid-single digits in back-to-back periods. The company has now penciled in a few sizable beats concerning Orders Delivered, reflecting the above-mentioned momentum.
Image Source: Zacks Investment Research
Analysts have bullishly raised their current-year sales expectations for the company. Sales are forecasted to grow nearly 5% YoY in its current fiscal year, the first positive change since 2020.
Image Source: Zacks Investment Research
Palantir Breaks Records (Again)
Quarterly sales of $1.2 billion in Palantir’s release reflected a record, climbing 63% from the year-ago period. Growth was broad-based, with US commercial revenue surging 121% YoY and US government revenue shooting 52% higher.
Below is a chart illustrating the company’s YoY revenue growth rates, expressed as a percentage, on a quarterly basis.
Image Source: Zacks Investment Research
PLTR inked many lucrative deals throughout the period, also closing a record-setting $2.8 billion in Total Contract Value (TCV), up 340% from the same period last year. And to top it off, Customer count grew by 45% YoY.
Analysts have raised their current-year sales expectations in a big way for PLTR, with sales expected to climb 54% year-over-year.
Image Source: Zacks Investment Research
HOOD Reports Surging Activity
Robinhood’s latest quarterly results broke records across several key metrics, also crushing our consensus EPS and sales estimates. Sales grew an impressive 100% year-over-year to a record $1.3 billion, whereas adjusted EPS soared 260%.
Net deposits of $20 billion reflected a quarterly record, with average revenue per user (ARPU) also climbing 82% year-over-year. Activity was broadly strong across its platform, with crypto, options, and equities revenues climbing 300%, 50%, and 86%, respectively.
Below is a chart illustrating the company’s YoY revenue growth rates, expressed as a percentage, on a quarterly basis.
Image Source: Zacks Investment Research
Sales expectations have followed a very bullish path, with HOOD expected to see 82% YoY revenue growth in its current fiscal year.
Image Source: Zacks Investment Research
Bottom Line
Strong sales growth leads to many obvious benefits, as it’s the foundation of generating profits. Above-average top line trends often lead to stock outperformance, as it’s commonly a reflection of red-hot demand, such as we’ve seen with Palantir (PLTR - Free Report) and Robinhood (HOOD - Free Report) . And in the case of Wayfair (W - Free Report) , the top-line turnaround reflects a key inflection point for the company, suggesting that a very tough period may now be in the rearview.