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What should I know to trade earnings?
The reporting clock, expectations, surprises and why a market reaction is relative rather than absolute.
- 01Understanding companies · beginnerRead guide
What happens when a company reports earnings?
An earnings report is a regular update on what a listed company sold, earned and expects next.
- 02Understanding companies · beginnerRead guide
Revenue
Revenue is the amount recognised from selling goods or services before related operating costs are deducted. Recognition rules determine when activity enters the income statement.
- 03Understanding companies · beginnerRead guide
Profit
Profit is what remains after defined revenues and expenses are matched for an accounting period. Different profit measures stop at different layers, so the label needs a definition.
- 04Understanding companies · intermediateRead guide
Earnings per share
Earnings per share, or EPS, allocates a defined profit attributable to ordinary shareholders across a weighted share count. Diluted EPS also reflects specified potential shares.
- 05Understanding companies · beginnerRead guide
Company guidance
Company guidance is management's stated expectation or range for future performance under current assumptions. It updates the information set but remains a forecast, not a commitment.
- 06Understanding companies · beginnerRead guide
Analyst estimates
Analyst estimates are forecasts for company measures such as revenue or earnings. A consensus combines selected forecasts, but dispersion and update timing reveal information hidden by the average.
- 07Understanding companies · intermediateRead guide
Earnings surprises
An earnings surprise is the difference between a reported earnings measure and a defined pre-release expectation. Its sign and size depend on the measure, estimate source and cut-off time.
- 08Markets & trading · intermediateRead guide
Before market open and after market close
BMO means before market open. AMC means after market close. The label tells you which regular session first had the news.
- 09Markets & trading · beginnerRead guide
Pre-market trading
Pre-market trading occurs before an exchange's main regular session under specific venue and broker rules. Participation and liquidity are often lower than during normal hours.
- 10Markets & trading · beginnerRead guide
After-hours trading
After-hours trading occurs after the regular session closes under extended-hours rules. It can process new information while offering less depth and wider spreads.
- 11Economy & context · beginnerRead guide
Earnings season
Earnings season is the period when many listed companies report periodic results. The clustering creates a dense flow of company and sector information rather than one formal market event.