Income from continuing operations is ongoing earnings from normal business activity. It is what a company can expect from future earnings, such as if a company plans to continue to produce shoelaces and buttons but no longer zippers, earnings from the zippers is not calculated as income from continuing operations.
Earnings from continuing operations do not include discontinued product lines, one-time sales of real estate or equipment. Earnings of this nature are from the company’s product lines or major business activity. A subset of net earnings, the breakdown of income from continuing operations gives a realistic picture to investors of how the company is faring overall.