What Are Earnings Reports and Why Are They Important?

Just as the name suggests, a quarterly earnings report is an earnings report, issued by publicly traded companies every quarter. 

Webull is one of my favourite platforms for keeping me up to date with earning report timelines. One of Webull’s features is an ‘earning’s calendar.  

A Breakdown of All of the Components of an Earnings Report

Every earnings report is made up of 4 key components . These 4 components include the press release (or letter), the financial statements, guidance, and data. 

Why Are Earnings Reports So Important?

The reason that these reports are so important is because investors rely on them to assess whether the company has been fairly valued.

Limitations of Quarterly Earnings Report 

There are some scenarios where investors will call the bluff of a company that is “sandbagging,” and it will completely backfire on them by causing the price of their stock to fall. 

What is “Earnings Season?

Earnings season is roughly a 6-week period (45 days) where companies will have to disclose all earnings reports for the quarter they are currently in.  

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