Net Income

RECENT NEWS
SeekingAlpha  7 hrs ago  Comment 
By Michael Carter: Recent Financial News Last week, Darden Restaurants (NYSE:DRI) delivered first quarter fiscal 2015 earnings. Excluding Red Lobster's impact on a year-over-year (YoY) basis due to its $2.1 billion sale to Golden Gate Capital...
newratings.com  Sep 15  Comment 
WASHINGTON (dpa-AFX) - Terex Corp. (TEX) announced that it expects third quarter earnings in the range of $0.55 to $0.65 per share. Analysts currently expect third quarter earnings of $0.79 per share. For full year 2014, the company now expects...
SeekingAlpha  Sep 15  Comment 
By Jonathan Loewer: Joe's Jeans Inc. (NASDAQ:JOEZ) reported their second quarter 2015 financial report after the market close on July 10th. On July 11th, the stock popped and closed up 21% the next day. $JOEZ beat on top and bottom lines, as net...
SeekingAlpha  Sep 15  Comment 
By Marshall Hargrave: Lululemon (NASDAQ:LULU) posted 2Q earnings of $0.33 a share (topping $0.29 consensus) and revenues were $391 million (besting $377 million consensus). Revenue for 2Q was up 13% y/y, but EPS was down 16% y/y. This comes as...
Forbes  Sep 13  Comment 
Saturday's fight marks the tenth straight fight Money Mayweather has earned at least $25 million for entering the ring.
The Hindu Business Line  Sep 12  Comment 
The stock markets will be looking to the next earnings season starting in a little over three weeks from now (after the second quarter), for determining its momentum, Anup Bagchi, MD &...
Benzinga  Sep 12  Comment 
Shares of Darden Restaurants (NYSE: DRI) jumped more than 3% in pre-market trading after the company reported better-than-expected fiscal first quarter earnings. The Orlando, Florida-based company reported a quarterly loss of $19.3 million, or...
Jutia Group  Sep 12  Comment 
[Zacks] - Micron (MU) might be in a good position to beat earnings at its next report. This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. Read more on this. Micron Technology,...
SeekingAlpha  Sep 12  Comment 
By The Value Investor: Investors in HD Supply (NASDAQ:HDS) were quite pleased with a solid set of second quarter earnings and an upbeat guidance for the third quarter. Despite real operational momentum, with growth outpacing general market growth...




 

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!

Example

  • 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)
Please install Flash Player to view this chart.
Please install Flash Player to view this chart.
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki