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forward earnings

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Financial Dictionary

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.

Investopedia Commentary

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.

Related Links

Understanding the P/E Ratio
Whisper Numbers: Should You Listen?
Types Of EPS

See also: Earnings, Price-Earnings Ratio - P/E Ratio, Price/Earnings to Growth - PEG Ratio, Pro-Forma Earnings, Trailing EPS, Trailing Twelve Months

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