Net Income

Wall Street Journal  8 hrs ago  Comment 
For all the negatives on the stock market, there is one big positive: Profits are set to start growing again.
Benzinga  Jun 10  Comment 
Spring Bank Pharmaceuticals Inc (NASDAQ: SBPH) is projected to post earnings for the latest quarter. © 2016 Benzinga does not provide investment advice. All rights reserved.  Jun 9  Comment 
ADLER Real Estate AG: Package of measures to sustainably boost earnings strength DGAP-News: ADLER Real Estate AG / Key word(s): Miscellaneous ADLER Real Estate AG: Package of measures to sustainably boost earnings strength 09.06.2016 / 15:26 The...
The Economic Times  Jun 8  Comment 
Indian stocks are among the most favoured in emerging markets, but actual earnings performance may belie that sunny outlook.
Reuters  Jun 8  Comment 
The seven-week strike by Verizon Communications Inc's wireline workers will hurt the company's second-quarter earnings and potentially cost up to 7 cents per share, its chief financial officer said.  Jun 8  Comment 
WASHINGTON (dpa-AFX) - Piedmont Natural Gas (PNY) announced the company now expects fiscal 2016 earnings in a range of $1.90 to $1.95 per share, before any merger-related expenses. The company's previous guidance was a range of $1.92 to $2.02...
Forbes  Jun 8  Comment 
Philip Morris’ Q1 2016 earnings missed consensus estimates. Despite this, the stock price has risen almost 17% this year.
Benzinga  Jun 8  Comment 
Lululemon Athletica inc. (NASDAQ: LULU) fell more than 3 percent for failing to deliver expected adjusted earnings for the first quarter. Revenue came in above the expected level. The company's earnings forecast for the second quarter also fell...


Net Income is the total amount of profit a company made over a given period of time

Net Income, (sometimes referred to as "net profit", or simply "earnings") is the amount of profit left over after all expenses, including federal and state taxes, have been subtracted. More specifically, it is equal to total revenue less cost of revenue, less operating expenses, less interest expense and income taxes, less or plus extraordinary items, less or plus other items. More simply, it is gross profit minus total operating expenses, minus interest expenses and taxes, plus any other income.

On a very high level, net income can be thought of as all money coming into the company minus all money spent.

Net income is often referred to as "income attributable to common shareholders" or some similar phrase. Net income represents the final net earnings result of the business on an accounting basis, not necessarily a cash basis. It is one of the most frequently tracked metrics because it is an important indicator of how well a company is doing during a particular period. When people refer to the "bottom line" they are talking about a company's net income as it is the last line on the income statement and the most significant number on the statement - arguably of any statement.

Net income is usually divided by the number of shares outstanding to arrive at earnings per share (EPS), the common barometer heard in nearly all financial reports because it provides an individual value to every share exchanged of a company. Most analysts and investors focus on "diluted" earnings per share, which figures in outstanding employee stock options and other equity grants beyond actual shares outstanding in the share markets.

Net Income also appears as the top line of the cash flow statement and represents the starting figure from which Change in Cash and Cash Equivalents is calculated. That saves me. Thanks for being so senslibe!


  • At the close of its fiscal year, Company XYZ reports revenue of $17 million with a cost of revenue of $7 million (equaling a gross profit of $10 million). Operating expenses total $5 million while the company owes $2.5 million in income taxes and $.5 million in interest expenses. The company also reports other income of $2 million. Thus, XYZ's net income for the fiscal year is $4 million. (17 - 7 - 5 - 2.5 - .5 + 2 = 4)
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