For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.

In contrast to all that, many investors prefer to focus on companies like Wizz Air Holdings (LON:WIZZ), which has not only revenues, but also profits. Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business.

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Over the last three years, Wizz Air Holdings has grown earnings per share (EPS) at as impressive rate from a relatively low point, resulting in a three year percentage growth rate that isn’t particularly indicative of expected future performance. So it would be better to isolate the growth rate over the last year for our analysis. To the delight of shareholders, Wizz Air Holdings’ EPS soared from €2.52 to €3.16, over the last year. That’s a commendable gain of 25%.

One way to double-check a company’s growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. It’s noted that Wizz Air Holdings’ revenue from operations was lower than its revenue in the last twelve months, so that could distort our analysis of its margins. Wizz Air Holdings shareholders can take confidence from the fact that EBIT margins are up from 1.6% to 4.0%, and revenue is growing. Ticking those two boxes is a good sign of growth, in our book.

You can take a look at the company’s revenue and earnings growth trend, in the chart below. For finer detail, click on the image.

See our latest analysis for Wizz Air Holdings

While we live in the present moment, there’s little doubt that the future matters most in the investment decision process. So why not check this interactive chart depicting future EPS estimates, for Wizz Air Holdings?

Insider interest in a company always sparks a bit of intrigue and many investors are on the lookout for companies where insiders are putting their money where their mouth is. That’s because insider buying often indicates that those closest to the company have confidence that the share price will perform well. However, insiders are sometimes wrong, and we don’t know the exact thinking behind their acquisitions.