Sales Growth Trends

Although mentioned before, it’s worth repeating that while the market prices stocks based on earnings expectations—earnings come from sales. That’s important because a slowdown in sales growth often precedes an earnings disappointment.

Zoll Medical provides a good example. Zoll makes defibrillators, devices used to resuscitate heart attack victims. Table 12-2 shows Zoll’s sales and earnings from 1998 through 2000, as displayed on Reuters Investor’s Highlights report.

Table 12-2. Reuters reports quarterly sales and earnings data for Zoll Medical.
Quarter199819992000
Quarterly sales (in millions)
March13.617.925.7
June12.920.827.4
September16.223.928.8
December16.124.428.6
Quarterly EPS
March0.050.140.23
June-0.130.220.28
September

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