Corporate Earnings

Corporate earnings are also referred to as “company earnings” and “corporate profits:” basically, the amount of money a company makes in certain period of time. The price/earnings multiple is still the most common tool used to value a company. The stock market values a company based on the amount of money—the earnings and profits—the company has after all expenses, including taxes, have been paid. In a stock market where stocks are traded at an average of 12 times earnings, a company making $1.00 a share per year would be valued at $12.00. All things being equal, the more money a public company makes, the higher its stock price.


The stock market is becoming a dangerous place to be. Going into the New Year, my stock market forecast for 2016 is negative on the S&P 500 for the three reasons I outline below. Corporate Earnings and Revenues Are Contracting…

The stock market cannot continue to rally when corporate earnings and revenues are contracting. For the third quarter of 2015, earnings on the S&P 500 are expected to decline by five percent and revenue is expected to decline by 3.5%.…

Here are four reasons why the stock market will continue to fall, starting with contracting earnings and revenue. On June 30, analysts were expecting S&P 500 companies to report a decline of one percent in corporate earnings. As of September…

By deciding on Thursday not to raise interest rates, the Federal Reserve gave the world the wrong message. How I interpreted the Fed’s lack of courage to act yesterday: “After keeping interest rates at zero for seven years, and having…

Early this year, I started writing about how falling copper prices were a leading indicator of trouble in the global economy. Since then, we’ve all come to know about the economic slowdown in China. But the further collapse in copper…

As of July 24, 187 companies in the S&P 500 have reported their corporate earnings. For these 187 companies, their average decline in earnings has been 2.2%. If this is the final number, then it will be the biggest decline…

While corporate earnings are managed and the whole Wall Street “consensus” game is kind of a misnomer, financial reporting is the backbone of business. And it’s valuable information when it comes to stock market investing in a variety of companies.…

The NASDAQ opened higher on Thursday, July 16th, as investors cheered a Greek bailout approval and strong corporate earnings. European stocks climbed and bond yields fell on Thursday after the Greek’s parliament approved a proposed bailout plan. Eurozone stocks rose…

A significant number of companies on the U.S. stock market continue to “engineer” their corporate earnings with stock buyback programs. Sadly, investors have become too complacent with this and remain overly optimistic. Beware! This is dangerous. Earnings Now Outright Misleading…

This morning, the news is full of talk about Greece. This weekend, the government there introduced capital controls in what’s looking more and more like a country on the brink of financial collapse. Greece leaving the eurozone is of importance…