From a quantitative point of view which information is significant, what can be ignored?


From the following 10-Q information, the bold highlighted rows are most significant:

  • Net sales
  • Cost of sales
  • Gross margin

  • Operating expenses:

    • Research and development
    • Selling, general and administrative
    • Total operating expenses
  • Operating income

  • Other income/(expense), net
  • Income before provision for income taxes
  • Provision for income taxes
  • Net income

  • Earnings per Share

    • Basic
    • Diluted
  • Shares used in computing earnings per share:

    • Basic
    • Diluted
  • Cash dividends declared per share

But keep in mind: this selection is not frozen in time. Some would argue that Net Income is also necessary.

  • $\begingroup$ By "significant" I assume you mean in terms of market impact. That these figures will cause a significant stock price reaction of they differ from expectations, i.e a "miss" or a "beat". $\endgroup$ – noob2 Sep 20 '17 at 23:55
  • 1
    $\begingroup$ Not really. By "significant" I mean "relevant" or the key financial figures that most participants look at. If you are looking for a figure for a significant stock price reaction, then EPS (diluted) would be the most relevant number. Comparing the Analyst expectations with the recent published numbers causes is often a stock price reaction. Net sales is also a relevant figure, especially when Company is generating no significant earnings. Amazon for instance, has high Revenue Growth, but they are directly investing their cash into new segments, therefore, their EPS is comparatively small. $\endgroup$ – Peter Sep 21 '17 at 5:32

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