Earnings typically refer to after-tax net income, sometimes known as the bottom line or a company’s profits. Earnings are the main determinant of a company’s share price, because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. Earnings are perhaps the single most important and most studied number in a company’s financial statements. It shows profitability compared to analyst estimates, the company’s own historical performance, and relative to its competitors and industry peers.
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