Earnings Reports
Quarterly company financial results that can move individual stocks 10%+ in minutes.
Quick Answer
Earnings reports are quarterly financial statements that publicly traded companies must release. They reveal revenue, profit (EPS), expenses, and future guidance. These reports are the most important events for individual stocks and can cause dramatic price swings.
On This Page
Overview
Earnings reports are quarterly financial statements that publicly traded companies must release. They reveal revenue, profit (EPS), expenses, and future guidance. These reports are the most important events for individual stocks and can cause dramatic price swings.
What It Is
An earnings report is a company's quarterly financial scorecard. It shows how much money the company made (revenue), how much profit it kept (earnings), and what management expects going forward (guidance). Public companies must release these reports within 45 days of each quarter's end.
Why It Matters
Earnings drive stock prices long-term. If a company consistently beats expectations, its stock typically rises. If it misses, the stock often falls.
Warning
How to Read Earnings
Focus on three things: (1) Did EPS beat or miss the consensus estimate? (2) Did revenue beat or miss? (3) Did the company raise, lower, or maintain guidance?
Pro Tip
Timing & Schedule
Typical Time
Before market (pre-market) or after market close
Schedule Notes
Earnings seasons occur in January, April, July, and October, lasting 4-6 weeks each. Major companies typically report in the first 2-3 weeks.
Typical Schedule
Every 3 months
Key Metrics to Watch
Trading Strategies
Common Mistakes to Avoid
Holding full position through earnings
Why It Happens
How to Avoid
Be aware and plan accordingly
Trading immediately after the release
Why It Happens
How to Avoid
Be aware and plan accordingly
Ignoring guidance
Why It Happens
How to Avoid
Be aware and plan accordingly
Historical Examples
Tesla missed earnings and gave weak guidance citing EV demand concerns.
Tesla missed earnings and gave weak guidance citing EV demand concerns.
Market Reaction:
Meta crushed estimates with strong ad revenue and cost cuts.
Meta crushed estimates with strong ad revenue and cost cuts.
Market Reaction:
Preparation Checklist
- Check the earnings date and time (before or after market)
- Know the consensus estimates for EPS and revenue
- Review the stock's history of post-earnings moves
- Decide your position size BEFORE the report
- Have a plan for both scenarios (beat and miss)