Given the importance of corporate earnings in nearly every stock valuation methodology, it's no surprise that companies sometimes, ahem, play fast and loose with their earnings numbers. Not only do they have to make "the number" for the quarter, they have to make the "whisper number" for the quarter. With that in mind, Zacks.com has posted a brief educational resource on how to evaluate earnings quality that includes a short primer on what to look for when companies release earnings. For example, watch out for one-time gains (e.g. sales of investments), or earnings that have been boosted by unsustainable cost-cutting programs.
For the TradeKing community: What are some examples of companies that you trust to bring home high-quality earnings, quarter after quarter?
[image: Searchlight via AlphaGeek on Flickr]
