Nyle Casey 
Corporate Earnings Reports detail the business performance of a publicly-traded company. They give investors a detailed picture of the company’s growth, profitability, and legal health. This information is useful for deciding when to invest and how much to invest. The reports also include a section that details economic data.
This week, more than 165 companies are set to report Q3 earnings. These companies range from megacap tech names like Alphabet, Microsoft, Facebook, and Apple to large conglomerates like Comcast and Ford. They also include some of our most familiar names like JetBlue, McDonald’s, UPS, and Mattel.
A good earnings report will include financial information as well as a marketing presentation. The press release and presentation decks typically contain marketing bias, so it’s important to read through the numbers for accurate information. Another option is to listen to the company’s earnings call to ask questions. Remember, when investing in the stock market, you’re investing in a publicly traded company and are required to submit yearly and quarterly financial statements (the 10-Q).
When analyzing earnings reports, investors should compare the company’s performance with previous quarters or years. They should also compare cost of sales and revenue trends. If the cost of sales is increasing, it will cost the company more money to generate revenue. Stock prices typically rise and fall during earnings season. However, it’s important to consider your investment goals when analyzing earnings reports.
The non-GAAP version of earnings can provide investors with a better look at a company’s performance. It also allows analysts to compare the performance of different companies. The report will reveal if a company has exceeded expectations, or if it missed analysts’ expectations. If the numbers are below expectations, the stock price could move wildly.
When analyzing corporate earnings reports, you should pay close attention to the EPS and net profit/income YoY growth. A company’s share price may be pushed higher if its guidance is higher than analyst expectations. If it misses, however, the stock may suffer from a temporary slump.
When a company releases its earnings, media coverage increases. As a result, consumers are more likely to patronize a company that makes headlines. For example, stores that sell durable goods often experience a spike in customer traffic. Coffee shops, restaurants, and fashion brands often see higher traffic after earnings announcements.
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