Related Words

Earnings: Revenues minus expenses and taxes. Also called income.

Price-To-Earnings Ratio (P-E): The price-to-earnings ratio (P-E) is the relationship between a company's earnings and its share price, and is calculated by dividing the current price per share by the earnings per share. A . . . View Full Definition

Retained Earnings: Retained earnings, also known as retained surplus, are the portion of a company’s profits that it keeps to reinvest in the business or pay off debt, rather than paying them out as dividends . . . View Full Definition

Accounting Earnings: Earnings of a firm as reported on its income statement.

Forward Price-To-Earnings Ratio: Stock analysts calculate a forward price-to-earnings ratio, or forward P/E, by dividing a stock's current price by estimated future earnings per share. Some forward P/Es are calculated based . . . View Full Definition

Earnings Per Click (EPC): Many contextual advertising publishers estimate their potential earnings based on how much they make from each click.

Earnings Surprise: When a company's earnings report either exceeds or fails to meet analysts' estimates, it's called an earnings surprise. An upside surprise occurs when a company reports higher earnings than . . . View Full Definition

Earnings Estimate: Professional stock analysts use mathematical models that weigh companies' financial data to predict their future earnings per share on a quarterly, annual, and long-term basis. Investment re . . . View Full Definition

Earnings Momentum: When a company's earnings per share grow from year to year at an ever-increasing rate, that pattern is described as earnings momentum. One example might be a company whose earnings grow one . . . View Full Definition

Earnings Per Share (EPS): Earnings per share (EPS) is calculated by dividing a company's total earnings by the number of outstanding shares. For example, if a company earns $100 million in a year and has 50 million o . . . View Full Definition