Earnings Line Design Goals

Earnings are a foundational concept that can have a significant impact on a stock’s longer term performance. With the option to view earnings as a plot versus a table of statistics, you can quickly identify earnings acceleration or deceleration. A steep line upwards from one earnings release to another, or a series of progressively higher EPS values, indicates a strong earnings trajectory. The more pronounced the acceleration, the more likely the company is to outperform the market.

With the Earnings Line indicator, at each quarterly earnings release you can view the details for Reported (non-GAAP), Diluted and Basic EPS by hovering over the plotted symbols on the earnings line.

This indicator uses TradingView’s financial functions to request the following EPS data:
▪ Reported (non-GAAP): this is one of the most popular ways to view earnings information. With non-GAAP, companies often exclude nonrecurring charges such as acquisitions and restructuring costs as these items are often not indicative of a companies overall performance.
▪ Basic: net income minus preferred dividends divided by the average number of common shares outstanding.
▪ Diluted: net income minus preferred dividends divided by the average number of common shares outstanding & convertible preferred shares such as convertible debt, equity options and warrants.