What is the difference between earnings and revenue? Or dictionary meaning? I looked them up and they seem to say the same thing.
revenue [usually referred to sale] counts for all the money a company takes for what is doin'. wether makin' goods or providin' services. other gains from investments are also included as revenue altough u might see 'em referred as to gross income. earnings [net income] instead refers to the company profits. it represents what the company has left over[if any] after costs, taxes, interests, etc.
Microsoft sells software. The revenue is the money they take in from selling said software. Earnings is what's left after paying employees, overhead, the guy's that break the knees of their competitors, etc.
Earnings is what its all about in conference calls on important announced earning dates Earning is actually earning per share, which is the $ amount that each share of a company yeilds after each quarter So earning means "net profit of each share" and revenue is sell or amount that comes in from selling the products
The difference is why I put more importance on increased REVENUE because very difficult to "monkey" with the revenue side of the money coming in the front door. EARNINGS can and are manipulated to achieve a desired result. SteveD
infact earnings [eps] have very little meanin' and influence on the price of a stock and its reaction...revenue and fcast and the most important things with the latter bein' the most influential on price movement.