Boeing Frontiers
November 2002 
Volume 01, Issue 07 
Top Stories Inside Quick Takes Site Tools
Focus on Finance
Inside the quarterly earnings process

Chairman and CEO Phil Condit It starts with a news release early in the morning before the stock market opens. Then Chairman and CEO Phil Condit and Chief Financial Officer Mike Sears conduct a webcast conference call with financial analysts and the media, followed by television and radio appearances. It’s earnings day—the day that the company reports its financial results for the latest quarter.

It’s all part of a process that publicly traded companies go through four times a year to provide an accurate picture of their financial performance. Quarterly earnings reflect how a company is performing compared to prior results, as the information is often presented in the form of a comparison with the results from the same quarter in the previous year.


Earnings talk: What the financial terms mean

Quarterly and annual financial reports feature a language of their own. Here are some definitions of the more commonly used terms you’ll find.

Revenues: Total dollar amount received for goods and services provided.

Operating earnings: Revenues minus cost of sales and other operating expenses. This figure gives insight to how well a company’s ongoing operations performed.

Net earnings: Operating earnings minus taxes, interest and other non-operating expenses.

Earnings per share: Net earnings divided by the number of shares outstanding. It’s used to measure a company’s profitability.

Non-recurring item: A one-time event, either a charge or a gain, that occurs for unusual reasons and is not representative of normal, ongoing operations. Examples include the cost of acquiring another business or the gain from selling a business.



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