Net income

SeekingAlpha  3 hrs ago  Comment 
ByRuss Fischer: Micron (MU) reported earnings yesterday afternoon. They were $.85 per share non-GAAP. Not what I had expected, but a significant beat on the street number of $.76 or $.61 or whatever the schizoid analysts had averaged it out to be....
Clusterstock  8 hrs ago  Comment 
Data on average hourly earnings just released by the U.S. Bureau of Labor Statistics in the March jobs report was disappointing. Wage growth has taken center stage in recent months as it has advanced to post-crisis highs, raising expectations of...
SeekingAlpha  Apr 4  Comment 
Hickey and Walters (Bespoke) submit: Both the Dow and the S&P 500 held up well Thursday, falling slightly but not suffering any kind of major setback. But not all was well in the market by any stretch, as we saw a lot of the "high-fliers" take...
Disciplined Approach to Investing  Apr 4  Comment 
In a recent report issued by Thomson Reuters' AlphaNow, it is noted analysts have lowered the bar for first quarter earnings. The only sector that saw an increase in earnings expectation for Q1 is the utility sector. The analyst revisions result...  Apr 3  Comment 
Matthews International Announces Second Quarter Earnings Release and Conference Call Schedule DGAP-News: Matthews International Corporation / Matthews International Announces Second Quarter Earnings Release and Conference Call...
The Economic Times  Apr 3  Comment 
Sector rotation will continue, and that should keep the upside on the stock market in check for sometime, says Mahesh Patil, fund manager, Birla Sun Life MF.  Apr 2  Comment 
Visit at for the full story.
SeekingAlpha  Apr 2  Comment 
By Doug Short: Here is a new update of a popular market valuation method using the most recent Standard & Poor's "as reported" earnings and earnings estimates and the index monthly averages of daily closes for the past month, which is 1863.52....
Wall Street Journal  Apr 2  Comment 
Agrium warned Wednesday it expects first-quarter earnings per share to be "just above" breakeven, hurt by a late start to the spring planting season and reduced rail availability.


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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