Earnings releases offer valuable insight into a company’s financials, which greatly impact the performance of its stock on the global stage.
Publicly traded companies are required to publish their earnings on a quarterly basis. Below you can see the earnings calendar for all the companies available at CMTrading.
|Shares:Delta Air Lines||Date:12-Oct-23|
|Shares:Bank of America||Date:17-Oct-23|
What is an earnings report?
Quarterly earnings reports are crucial for stock traders as they serve as an indicator of how a company performed over the last quarter. Earnings reports typically include valuable financial data such as the earnings per share (EPS), the net income of the company as well as net sales.
These reports tend to trigger increased volatility in the market due to how they affect investor sentiment in a company or industry segment. As such, trading activity tends to pick up during earning releases, which provide exciting trading opportunities due to the higher trading volume and profit potential.
Therefore, an earnings report can help traders determine the general price direction and identify potential trading opportunities.
How to trade earning releases
As is the case with other high-impact financial reports, market analysts typically try to predict a company’s financials before the actual earnings release is made public.
If the forecasts are not in agreement with the actual report, then it’s quite likely that the price of the company’s stock will be affected as investors digest the numbers.
Put simply, when the estimates point to a positive quarter, but the actual results don’t meet the forecasts, investors are likely to start selling their equity, which will eventually drive prices down.
On the other hand, if an earnings report exceeds the market’s expectations, investors will flock to buy the stock in anticipation of an increase in demand and price.