Net income

MarketWatch  1 hr ago  Comment 
Johnson & Johnson is slated to release third-quarter profit and sales results before Tuesday’s opening bell, with investors waiting to see if the drug and health products company can beat profit forecasts for a 15th-straight quarter.
SeekingAlpha  3 hrs ago  Comment 
SeekingAlpha  5 hrs ago  Comment 
By The Specialist: It's not a huge success yet, but Yum Brands' (NYSE:YUM) breakfast at Taco Bell is finally starting to breathe new life into the chain. According to the earnings release, same-store sales at US Taco Bell lifted 3%, and were...
SeekingAlpha  Oct 9  Comment 
By WhisperNumber: Family Dollar Stores (NYSE:FDO) is expected to report earnings on Thursday, October 9th. The whisper number is $0.76, one cent behind the analysts' estimate and showing little confidence from the WhisperNumber community. Whispers...
New York Times  Oct 9  Comment 
The company attributed its growth to strong sales in foreign markets and new promotions.
Wall Street Journal  Oct 9  Comment 
Allergan, trying to fend off takeover attempts, boosted its third-quarter earnings outlook and gave rosy long-term forecasts, citing its growing market share and regulatory approvals.
Wall Street Journal  Oct 9  Comment 
MarketWatch  Oct 8  Comment 
Alcoa shares advance in the extended session Wednesday after quarterly results top Wall Street estimates, while Gap shares decline after a sales miss and the announced retirement of the company’s CEO.
SeekingAlpha  Oct 8  Comment 
By WhisperNumber: Alcoa (NYSE:AA) is expected to report earnings on Wednesday, October 8th. The whisper number is $0.29, six cents ahead of the analysts' estimate and showing strong confidence from the WhisperNumber community. Whispers range from...
SeekingAlpha  Oct 8  Comment 
By The Value Investor: Yum! Brands (NYSE:YUM) posted a mixed earnings report as sales missed estimates while earnings came in a little better than anticipated. That being said, the full year outlook was cut, which is essentially a cut in...  Oct 8  Comment 
NEW YORK (TheStreet) -- Have investors been looking at company earnings the wrong way? A new study confirms what in hindsight may seem obvious: when a company moves itsaearnings announcement forward, that usually means good news. And when a...


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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