Forward Earnings
Definition of 'Forward Earnings'A company's forecasted, or estimated, earnings made by analysts or by the company itself. Forward earnings differ from trailing earnings (which is the figure that is quoted more often) in that they are a projection and not a fact. There is are many methods used to calculate forward earnings and no single established way. |
|
Investopedia explains 'Forward Earnings'Forward earnings is nothing more than a figure reflecting predictions made by analysts or by the company itself. More often than not they aren't very accurate. This is the problem: trailing earnings are known but are relatively less important since investors are more interested in the future earning potential of a company. |
Related Definitions
Articles Of Interest
-
Whisper Numbers: Should You Listen?
These unofficial forecasts hold the potential for insider insight - and investment risk. -
The 5 Types Of Earnings Per Share
A look at the five varieties of EPS and what each represents can help an investor determine whether a company is a good value, or not. -
One of my stocks missed the deadline to file its quarterly financial statements. What happens next?
The date and time that a company releases its earnings is very important because investors looking to buy or sell the particular security are counting on the information to help make a decision. ... -
Understanding The P/E Ratio
Learn what the price/earnings ratio really means and how you should use it to value companies. -
10 Common Financial Terms Every Newbie Needs To Know
In order to get a better understanding of what you read in markets news, we’ll briefly explore the terms you commonly encounter. -
What Determines Your Cost Basis?
In any transaction between a buyer and seller, the initial price paid in an exchange for a product or service will qualify as the cost basis. When it comes to securities and related financial ... -
Earnings Guidance: Can It Accurately Predict The Future?
Explore the controversies surrounding companies commenting on their forward-looking expectations. -
Depreciation: Straight-Line Vs. Double-Declining Methods
Appreciate the different methods used to describe how book value is "used up". -
Financial Statement: Extraordinary Vs. Nonrecurring Items
When it comes to analyzing a company, successful analysts spend considerable time differentiating between accounting items that are likely to recur going forward from those that most likely will ... -
Examining Stereotypes In Investing
Irrespective of age, sex and other such factors, no normal investor wants an unsuitable investment. How much people really understand about their investments depends on various factors, including ...
Free Annual Reports