Earnings Leads

1
Earnings Leads

• Noxious Inc.s first-quarter earnings rose/fell
  percent because
• Noxious Inc. first-quarter net income rose/fell
  to x cents a share from x cents a year earlier
  because
• Noxious Inc.s first quarter earnings
  exceeded/failed to meet/met analyst estimates
  because

2
Earnings Elements 1

• Companys net income for quarter compared with
  previous-year quarter.
• Why income up/down. Fit a trend?
• Revenue for quarter compared to year-earlier.
• Note adjusted income, which excludes one-time
  items.
• Analyst expectations (based on adjusted) met or
  not.

3
Earnings Elements 2

• Analyst reaction.
• Management comments, guidance.
• Components of earnswhat products, divisions did.
• Components of revenuesame.
• Implications for future?
• Note any outstanding irregularities in financial
  statement.

4
Earnings Terms

• GAAP, as-reported, net income earnings including
  every expense.
• Adjusted, non-GAAP, operating earnings excluding
  extraordinary or one-time charges and credits.
• Report income both per-share and dollar terms.
• Revenue just in dollar terms.
• Analyst comments based on non-GAAP.

5
Earnings Terms-2

• Always use diluted share figures. Those are the
  real numbers.
• Operating has two meanings now non-GAAP
  earnings and something approaching EBITDA.
• Comparisons always for year-earlier.
• Six, nine and full-year figures come after
  quarterly stuff.
• Some exchanges just twice a year!

6
Earns Guidance

• Company raised/lowered/confirmed x quarter
  revenue, earnings guidance because
• Cite old and revised figures. Use per-share for
  earns.
• Cite year-ago figures.
• Details on where revenue getting stronger/weaker.