How to Read Earnings Reports: Understanding Quarterly Reports

React to what the market shows you, and you’ll see what a stock is actually worth. The information in this section can help traders understand the trends the company’s following. RKT has a float of 100 million shares, which isn’t considered low float. But on March 2, its volume spiked to more than 10 times its daily average. When you add in short interest close to 40%, that’s a good recipe for a short squeeze. This is one of your best indicators that the market is excited about a stock.

Form 10-Q, on ADSS forex broker the other hand, is a no-frills document that is submitted to the Securities and Exchange Commission (SEC). The 10-Q carries more significance for investors because it contains a wealth of information. While elements of the earnings report can fall into the realm of marketing material, companies releasing them cannot fudge the numbers without risking an SEC violation. The earnings report is the predominant method for a publicly-traded company to report its financial results for a specific period. Investors can use a company’s earnings report to gain insight into how well a company is run and whether the company is performing well.

Market and economic views are subject to change without notice and may be untimely when presented here. Do not infer or assume that any securities, sectors or markets described in this article were or will be profitable. Historical or hypothetical performance results are presented for illustrative purposes only. Earnings reports can be comprehensive affairs that often include a summary by company executives, a call with shareholders, and interviews with financial media outlets. However, the meat of an earnings report – and what is required by the SEC – are 10-Q and 10-K filings.

1. Before earnings reports come out, stock analysts issue earnings estimates (an estimate of the number they think earnings will hit).
2. Learning how to read earnings reports and evaluating the information in them can give you a lot of insight into the company’s past … and that can help you analyze what might be in store for a stock.
3. It is not intended as a recommendation and does not represent a solicitation or an offer to buy or sell any particular security.
4. The quarterly earnings reports in which they do this let shareholders and potential investors take a peek under the hood to see how a business is faring.
5. For better or worse, a company’s ability to beat earnings estimates projected by analysts or by the firm itself can be more important than its ability to grow earnings over the prior year.
6. Earnings reports include details about a company’s revenue, profits, expenses, and much more over the past quarter of operations.

Impact of Companies Reporting Earnings Results in the Stock Market

It’s also legally required and must be filed with the Securities and Exchange Commission (SEC) every quarter. The term ‘earnings report’ generally refers to a quarterly earnings report. Such information is time sensitive and subject to change based on market conditions and other factors.

“We’ve been living under a tariff environment for seven years, so we’re pretty familiar with that,” he said. “Tariffs, though, are inflationary for customers, so we want to work with suppliers and with our own private-brand assortment to try to bring down prices.” He said about two-thirds of the items that Walmart sells are made, grown or assembled in the U.S., which reduces the tariff risk for those goods. And he added that Walmart, like other retailers, has been trying to diversify where it imports goods. Walmart shoppers have also been willing to pay more to get their purchases faster, Rainey said.

Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer. If you value fundamental analysis, you need to know how to read earnings reports. They’re a great source of unbiased information on a company’s financial health.

Press release:

The Zacks Consensus Estimate for the same is pegged at $2.11 per share, unchanged over the past 30 days. The reported revenue represents a surprise Pit Bull of +1.99% over the Zacks Consensus Estimate of $1.58 billion. With the consensus EPS estimate being $0.46, the EPS surprise was +6.52%. Bath & Body Works (BBWI Quick QuoteBBWI – Free Report) reported $1.61 billion in revenue for the quarter ended October 2024, representing a year-over-year increase of 3.1%. The big news is the confirmation that Blackwell, the newest iteration of its Superchips, is on schedule and will be rolled out without a hitch. Retailers, including Walmart, are contending with a mixed bag of factors this holiday season.

Here are some stocks, which, according to our model, have the right combination of elements. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Nvidia’s data center segment continues to be the driving force behind its success, though its gaming arm is still showing solid growth. Demand for its Superchips and related hardware is at a fever pitch.

How to Read Earnings Reports: 8 Important Factors

It also comes with “The Complete Penny Stock Course” book and my “Pennystocking Framework” DVD. Equity securities — shares — represent ownership of a firm, company, or trust. They often pay dividends and give the holder some control over the company through How to buy bitcoin gold voting rights. This section of the report is where the company has to share whether it’s a party to any current legal proceedings.

Earnings Reports: What They Are and Where to Find Them

After-hours earnings are earnings reports released after the market close. Depending on whether the earnings are good or bad, the stock can have huge moves to the upside or downside. The 10-Q is kind of a cheat sheet for fact-checking the quarterly earnings report and confirming the cold, hard facts.