Earnings
in sentence
640 examples of Earnings in a sentence
Their net foreign
earnings
must be invested in foreign countries’ stocks and bonds.
While much of that investment will flow to the US, the surplus countries want to diversify their investment of these new net export
earnings.
The flow of net export
earnings
from the oil producers and others into euros will push up the value of the euro and enable the transfer of funds to occur.
More than 90% of Venezuela’s export
earnings
come from the oil and gas sectors, which provide about half of the government’s income.
Energy accounts for 70% of Russia’s export
earnings
and half of its budget revenue – money that is used to finance the military, nationalist state-owned media, cyber wars, the fifth column in Ukraine and other countries, and the lavish lifestyles of the country’s elites, including Putin.
Real average weekly
earnings
have fallen in recent months, and are now lower than they were 18 months ago.
This more challenging scenario of anemic recovery undermines hopes for a V-shaped recovery, as low growth and deflationary pressures constrain
earnings
and profit margins, and as unemployment rates above 10% in most advanced economies cause financial shocks to re-emerge, owing to mounting losses for banks’ and financial institutions’ portfolios of loans and toxic assets.
So far, the governments in neither Chad nor Cameroon have been willing to publish any
earnings
records concerning the pipeline project.
For example, Chad’s yearly oil earnings, at $2 billion, now account for 40-50% of its annual budget, and small-scale business, indirect investments, human-resources development, and other incidental benefits are likely to follow.
A version of this scheme is already in place in Singapore, where ministers receive bonuses if the government hits targets for GDP growth, income growth (including a measure of how
earnings
are progressing for the bottom 20%), and unemployment.
Some of the banks did report
earnings
in the first quarter of this year, mostly based on accounting legerdemain and trading profits (read: speculation).
Do Spectacular
Earnings
Justify Spectacular US Stock Prices?
One might think the increase is justified, given that real quarterly S&P 500 reported
earnings
per share rose 3.8-fold over essentially the same period, from the first quarter of 2009 to the second quarter of 2018.
In fact, the price increase was a little less than equal to
earnings.
What if we measure
earnings
growth not from 2008, but from the beginning of the Trump administration, in January 2017?
From the first quarter of 2017 to the second quarter of 2018, real
earnings
increased almost as much, by 20%.
With prices and
earnings
moving together on a nearly one-for-one basis, one might conclude that the US stock market is behaving sensibly, simply reflecting the US economy’s growing strength.
But it is important to bear in mind that
earnings
are highly volatile.
Earnings
are different from most other economic variables, because they are defined essentially as the difference between two series: revenues and expenses.
Rapid growth in
earnings
for a few years can thus easily be followed by a return to the long-term trend or even subpar levels.
In fact, S&P 500 reported
earnings
per share were negative during the fourth quarter of 2008, partly owing to financial-crisis-induced write-offs.
Market participants ought to know that they shouldn’t overreact to
earnings
growth, but they sometimes forget if popular narratives mislead.
Although real S&P Composite annual
earnings
rose 2.6-fold in just two years, from around trend in 1914 to a record high in 1916, stock prices rose only 16% from December 1914 to December 1916.
Market reaction to
earnings
increases was much more positive in the “roaring twenties.”
After the end of the 1920-21 recession, real annual earnings, which had been depressed by the downturn, increased more than fivefold in the eight years to 1929, and real stock prices increased almost as much – more than fourfold.
Unfortunately, that spirit did not end well, with both stock prices and corporate
earnings
crashing catastrophically at the end of the decade.
There was then a period, from 1982 to 2000, when real stock prices increased 7.5-fold while real annual
earnings
only doubled.
By 2003, however, both real
earnings
and real stock prices fell by almost half.
Then, from 2003 to 2007, during a period of gradual recovery following the 2001 recession, real corporate
earnings
per share almost tripled.
But the real S&P 500 less than doubled, because investors apparently were unwilling to repeat their mistake in the years leading to 2000, when they overreacted to rapid
earnings
growth.
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