What Corporate Profits Really Tell You

You need to go beyond the headlines to interpret a company’s earnings.

(Image credit: Illustration by Robert Neubecker)

Stock investors of all stripes care about corporate earnings. Lovers of fast-growing firms prefer profits growing at a high, compounding rate, for example, and those looking for undervalued names may covet firms whose stock prices look cheap in comparison to earnings per share. Lately, the earnings picture for the broad stock market has been cloudier than ever, frustrating professional and armchair analysts alike.

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Ryan Ermey
Former Associate Editor, Kiplinger's Personal Finance

Ryan joined Kiplinger in the fall of 2013. He wrote and fact-checked stories that appeared in Kiplinger's Personal Finance magazine and on Kiplinger.com. He previously interned for the CBS Evening News investigative team and worked as a copy editor and features columnist at the GW Hatchet. He holds a BA in English and creative writing from George Washington University.