Net Income

SeekingAlpha  Sep 20  Comment 
By The Value Investor: Shares of ConAgra Foods (NYSE:CAG) jumped on the back of solid set of first-quarter earnings results, as the company is reiterated its full-year earnings outlook, thereby comforting investors. Despite reasonable non-GAAP...
Forbes  Sep 19  Comment 
Cloud revenues registered robust growth while sales from new software licenses and hardware products declined on a year-on-year basis. Oracle?s quarterly earnings per share stood at $0.62, at the lower end of its quarterly guidance and lower than...  Sep 19  Comment 
The Trading Radar highlights key earnings and economic announcements for the next trading session: Before Markets Open: Earnings: AutoZone (NYSE: AZO) - consensus EPS $11.26 Intraday or Not Specified: Economics: 10:00am EDT Existing Home Sales...
Forbes  Sep 19  Comment 
Bed Bath & Beyond is expected to report lower second-quarter earnings on Tuesday, September 23, 2014. Analysts are expecting a 2% drop in earnings from a year ago. The consensus estimate is $1.14 per share, down from earnings of $1.16 per share a...
SeekingAlpha  Sep 19  Comment 
By Orange Peel Investments: By Thom Lachenmann Pier 1 (NYSE:PIR), like many retail stocks, ran into some bumps on Wednesday after hours when it reported earnings. The stock was trading down almost 10% around $14/share as after hours trading...
The Economic Times  Sep 19  Comment 
Nobody is looking at FY15 numbers as yet and all the improvement in the market fundamentals and the rallies based on substantial improvement in FY16.
SeekingAlpha  Sep 19  Comment 
By IAEResearch: Rite Aid (NYSE:RAD) announced its second quarter earnings yesterday - the company reported net income of $127.8 million and net income per diluted share of 13 cents. The year-over-year growth in income is massive - Rite Aid...
SeekingAlpha  Sep 18  Comment 
By WhisperNumber: Red Hat (NYSE:RHT) is expected to report earnings on Thursday, September 18th. The whisper number is $0.43, five cents ahead of the analysts' estimate and showing strong confidence from the WhisperNumber community. Whispers range...
SeekingAlpha  Sep 18  Comment 
By Jeffrey Himelson: Yesterday Lennar (NYSE:LEN) reported better than expected Q3 earnings. Analysts were expecting $0.67 per share in earnings on revenue of $1.96 billion. Lennar's earnings came in at $0.78 per share on revenue of $2 billion....


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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