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.

BREAKING DOWN '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.