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
What Is Earnings Before Interest After Taxes (EBIAT)? Earnings before interest after taxes (EBIAT) is one of a number of financial measures that are used to evaluate a company’s operating performance for a quarter or a year. EBIAT measures a company’s profitability without taking into account its capital structure, which is the combination of debt
What Is Earnings Before Interest, Depreciation and Amortization ( EBIDA)? Earnings before interest, depreciation and amortization (EBIDA) is a measure of the earnings of a company that adds the interest expense, depreciation, and amortization back to the net income number. However, it does include tax expenses. This measure is not as well known or used
What Is Earnings Before Interest and Taxes (EBIT)? Earnings before interest and taxes (EBIT) is an indicator of a company’s profitability. EBIT can be calculated as revenue minus expenses excluding tax and interest. EBIT is also referred to as operating earnings, operating profit, and profit before interest and taxes. Key Takeaways EBIT (earnings before interest and taxes) is a
What Is EBITA? Earnings before interest, taxes, and amortization (EBITA) is a measure of company profitability used by investors. It is helpful for the comparison of one company to another in the same line of business. In some cases, it also can provide a more accurate view of the company’s real performance over time. Another
