Chapter 36

Earnings Quality

B. Lev

New York University, New York, NY, USA

Outline

A Case in Point

On 18 April 2006, Johnson & Johnson (J&J), a large pharmaceutical company, publicly disclosed that its first-quarter 2006 earnings per share (EPS) were $1.10, beating analysts’ consensus forecast of earnings by 3¢.1 Gilead Sciences, another pharma company, disclosed its first-quarter 2006 earnings of $0.275 EPS (split ...

Get Handbook of Key Global Financial Markets, Institutions, and Infrastructure now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.