Earnings Report
A company's official quarterly disclosure of revenue, earnings, margins, and guidance. The biggest recurring event in single-stock trading.
An earnings report is the quarterly financial statement a public company must file with the SEC (10-Q for quarters 1–3, 10-K annually). It includes income statement, balance sheet, cash flow, and management commentary.
The market reaction is driven not by the raw numbers but by the delta versus expectations: consensus EPS and revenue estimates compiled from analyst forecasts. A beat can gap a stock up 10%; a miss can gap it down 20% — even if earnings were still positive.
Earnings reports are accompanied by a conference call where management discusses results and takes analyst questions. Forward guidance given on that call often matters more than the backward-looking reported numbers.
Related Terms
After-Hours Trading
Stock trading that occurs after the official 4:00 PM ET close. Lower liquidity and wider spreads; major news like earnings often hits here.
IntermediateEarnings Beat
When a company reports EPS or revenue above the analyst consensus estimate. Often triggers a stock price increase.
BeginnerEarnings Gap
The overnight price jump or drop a stock makes between the prior close and the open after an earnings report.
IntermediateEarnings Miss
When a company reports EPS or revenue below the analyst consensus estimate. Typically triggers a sharp stock decline.
BeginnerEarnings Season
The 4–6 week window each quarter when most public companies report results. Runs approximately January, April, July, and October.
BeginnerEPS (Earnings Per Share)
Net income divided by shares outstanding. EPS is the single most-watched earnings metric for valuing a stock.
BeginnerForward Guidance
Management's public forecast for future revenue, earnings, or margins. Often moves the stock more than the reported quarter itself.
IntermediateP/E Ratio
Share price divided by earnings per share. The P/E tells you how many dollars investors pay for each dollar of earnings.
BeginnerPEG Ratio
P/E ratio divided by the expected annual EPS growth rate. Adjusts valuation for growth — a PEG near 1.0 is often seen as fair value.
IntermediatePre-Market Trading
Trading before the 9:30 AM ET open, typically from 4:00 AM to 9:30 AM ET. Used to react to overnight news, data, and earnings.
IntermediateRevenue
The total income a company generates from its business activities before any costs are deducted. The "top line" of the income statement.
Beginner