Headline Earnings

AAA

DEFINITION of 'Headline Earnings'

A basis for measuring earnings per share implemented by the Institute of Investment Management and Research. This method accounts for all the profits and losses from operational, trading, and interest activities, that have been discontinued or acquired at any point during the year. Excluded from this figure are profits or losses associated with the sale or termination of discontinued operations, fixed assets or related businesses, or from any permanent devaluation or write off of their values.

INVESTOPEDIA EXPLAINS 'Headline Earnings'

Headline earnings provides a stringent measurement tool. Investors can use it to compare and contrast different companies according to the standard method of accounting for net income (and EPS).

Some companies report headline earnings per share in addition to required EPS figures.

RELATED TERMS
  1. Earnings Per Share - EPS

    The portion of a company's profit allocated to each outstanding ...
  2. Discontinued Operations

    A segment of a company's business that has been sold, disposed ...
  3. Earnings

    The amount of profit that a company produces during a specific ...
  4. Cash Earnings Per Share - Cash ...

    A measure of financial performance that looks at the cash flow ...
  5. Net Income - NI

    1. A company's total earnings (or profit). Net income is calculated ...
  6. Diluted Earnings Per Share - Diluted ...

    A performance metric used to gauge the quality of a company's ...
Related Articles
  1. Markets

    The 5 Types Of Earnings Per Share

  2. Fundamental Analysis

    What is the difference between cash ...

  3. Fundamental Analysis

    What are some examples of how cash flows ...

  4. Taxes

    What's the difference between cost of ...

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center