You might have heard in the news that Disney’s EPS (earnings per share) beat estimates or is forecasted to earn over $1.10 per share next year. But why earnings? Why such a big emphasis on this?
News headlines every day draw audiences to tune in for these results. Millions of investors draw conclusions from this, but why?
What are the earnings? Many results will be money derived from labor, income from an investment, amount of money earned after all costs and expenses are paid.
Let’s simplify this with the following example: Continue reading