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Fundamental AnalysisE

Earnings

Earnings refer to a company's net profit after all expenses, taxes, and costs have been deducted from total revenue. They are one of the most important metrics in fundamental analysis, as they directly influence stock valuations, investor sentiment, and price-to-earnings ratios. Companies report earnings quarterly, and results that beat or miss analyst expectations can cause significant price volatility.

Example

Apple reported quarterly earnings of $1.52 per share, beating the consensus estimate of $1.43, which sent the stock up 5% in after-hours trading.