What Is an Earnings Recast? An earnings recast is the act of amending and re-releasing a previously released earnings statement, with specific intent. Some of the most typical reasons for recasting earnings are to show the impact of a discontinued business or to separate out earnings-related events that are deemed to be non-recurring or otherwise
What Is a Quarterly Earnings Report? A quarterly earnings report is a filing made by public companies every three months to report on their recent financial performance. Quarterly earnings reports include items such as net income, earnings per share, earnings from continuing operations, and net sales. Stock analysts and investors use quarterly earnings reports as
What is Earnings Season? Earnings season refers to the months of the year during which most quarterly corporate earnings are released to the public. Earnings season generally occurs in the month immediately following the end of each fiscal quarter. This means that earnings seasons typically fall in January, April, July, and October, because firms need time
What Is Earnings Stripping? Earnings stripping is a common tactic used by multinational corporations to escape high domestic taxation by using interest deductions in a friendly tax regime area to lower their corporate taxes. In other words, earnings stripping is a technique used by corporations that try to minimize their U.S. tax bills by shifting
What Is an Earnings Surprise? An earnings surprise occurs when a company’s reported quarterly or annual profits are above or below analysts’ expectations. These analysts, who work for a variety of financial firms and reporting agencies, base their expectations on a variety of sources, including previous quarterly or annual reports and current market conditions, as
What Is an Earnings Withholding Order? An earnings withholding order is a court order issued by a judge that instructs an employer to garnish wages from one of their employees. These notices are issued when creditors have succeeded in obtaining a legal judgment against a debtor, who in this case is the employee. The order
What Is an Earnout? An earnout is a contractual provision stating that the seller of a business is to obtain additional compensation in the future if the business achieves certain financial goals, which are usually stated as a percentage of gross sales or earnings. If an entrepreneur seeking to sell a business is asking for
What Is an Easement in Gross? An easement is a concept in real estate in which one party, either an individual or organization, gains the right to use another party’s property in a defined way. In some cases the holder of the easement pays the owner of the property for the right of usage; in
What Is the Ease of Movement Indicator? Richard Arms’ Ease of Movement (EOM or EMV) indicator is a technical study that attempts to quantify a mix of momentum and volume information into one value. The intent is to use this value to discern whether prices are able to rise, or fall, with little resistance in
What Is Eat Well, Sleep Well? “Eat well, sleep well” is an adage that, referring to the risk-return tradeoff, says that the type of security an investor chooses depends on whether they want to generate high returns or have peace of mind. This tradeoff can be thought of as balancing return needs and risk tolerance. Key
