Core Earnings

What Does It Mean?
What Does Core Earnings Mean?
The revenue derived from a company's main or principal business less all associated expenses.
Investopedia Says
Investopedia explains Core Earnings
Compared to net income, core earnings remove all secondary activities performed by a company so that investors will be not be as easily fooled by activities unrelated to the main business.

For example, a car manufacturer's main business is producing vehicles. All revenue and expenses associated with the production of cars would be included in the core earnings. Financing schemes, development of non automobile parts or engines, maintenance of pension funds, and real estate interests would be omitted from the core earnings figure.
Related Links
  • Core Earnings Measure Up - This metric is an attempt to counteract creative accounting, but it poses its own set of challenges.
  • Everything You Need To Know About Earnings - We go over the concepts behind the excitement over the most important figure in the stock market.
  • Types Of EPS - The math may be simple, but to make informed investment decisions, investors need to understand the many varieties of EPS and what each represents.
  • How To Evaluate The Quality Of EPS - Companies can manipulate their numbers, so you need to learn how to determine the accuracy of EPS.
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