Earnings or accounting earnings are a company's profit, (generally referred to as net income), after a period of 3 months or a year. Earnings, in the general sense, can be wages for labor, company profits, or any other increase in money an entity enjoys.
Earnings are often reported as earnings per share. This number is arrived at by dividing earnings by the number of shares outstanding on a specified date. Earnings per share are said to be fully diluted when the number of shares outstanding is expanded to include shares to be created by outstanding convertible securities and stock options.
Related Fool Articles
Recent Mentions on Fool.com
- Munger's Advice on Shamans, Humility, and Attention Spans
- 3 Best Dividend Stocks for Growth Investors
- Why American Express Gave Costco the Boot (and Not the Other Way Around)
- The Most Expensive Stock in Transportation Worth Buying
- Investors' Love/Hate Relationship With 3D Systems Stock
- Why This Transportation Stalwart Isn't Built to Last