‘Earnings Season’ is a period of time in which publicly traded companies release their quarterly earnings report. Based on this information, stock prices can fluctuate either up or down depending on the ‘financial health’ of the company during that quarter. Although not all companies are on the same quarterly reporting schedule, most ‘earnings seasons’ begin one or two weeks after the last month of each quarter. Look for the majority of public companies to release their earnings reports in early to mid- January, April, July, and October.
All publicly traded companies must release their quarterly earnings report at the end of each quarter through press releases and filing of the report with the SEC (Securities Exchange Commission).
Why does ‘earnings season matter’? It’s a very busy time in the market as analysts, traders, and investors review the reports and decide if they will keep the company’s shares, or liquidate. It’s a time when there will be a lot of trading as shares will increase in value or fall as the market reacts to the earnings report data. This may be a time when you see your retirement accounts increase, or lose value based on the share value of your portfolio’s independent holdings. This is also when you will see more media coverage of major earnings reports released, or missed expectations. It is all tied to a company’s quarterly earnings report. Your fund or stock statements reflect the earnings season reporting, and report the value of your shares the last day of trading for the quarter.
Earnings season gives us a look into a company’s individual financial health, and a broader view of the specific industry the company is in. Because these companies employ millions of Americans, and tie up investment dollars of individual investors, this is a time when financial analysts and traders make decisions on whether to hold or sell off company stock.
Earnings season is a great time to determine if you want to hold or sell off holdings inside your portfolio. As your advisor, I can also assist with your 401(k) account by analyzing fund performance for each quarter. Many times short term investors are more affected by the volatility of earnings season than long term investors. It’s important to remember that your stock related investments are directly tied to company performance during each earnings season. Contact our Las Vegas Financial Advisory office if you would like to review your portfolio during this earnings season.