Earnings
The amount of profits that a company produces during a specific period, which is usually defined as a quarter (three calendar months) or a year. Earnings typically refer to after-tax net income.Ultimately, a business's earnings are the main determinant of its share price, because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. Investopedia Says:
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. A business's quarterly and annual earnings are typically compared to analyst estimates and guidance provided by the business itself. In most situations, when earnings do not meet either of those estimates, a business's stock price will tend to drop. On the other hand, when actual earnings beat estimates by a significant amount, the share price will likely surge. Related Terms:
Bottom Line
Consensus Estimate
Core Earnings
Earnings Before Interest, Taxes, Depreciation and Amortization - EBITDA
Earnings Estimate
Earnings Per Share - EPS
Earnings Recast
Earnings Surprises
Net Income - NI
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