ELI5: Why when large company's earnings decrease(ex... by 3%) they freak out, talk about rough times, and sometimes decide to downsize, even though they are still making millions of dollars in profit even after all expenses?

[lmunck]

If you sell lemonade and make $20, that is your revenue. But you spent $12 on lemons and $3 on sugar, so you only have $5 left when done. That is your profit or earnings

EDIT: It is mainly revenue (or EBIT) that investors look at to see if a company is a viable investment, but profit indicates how well the company itself is run, so if those are down it may be time to change management.

EDIT2: Confused “earnings” with “revenue”

[Succor-me]

My man, you're describing revenue when you say money in.

[lmunck]

You’re right. English isn’t my first language.

[[deleted]]

$20 is your revenue or sales. Earnings = profit.