Wrap Your Mind Around Corporate Earnings Reports
- By DailyWorth Team
- July 27, 2011
Earning season comes four times a year, and lasts for roughly a month. It’s when most public companies—including most of the S&P 500—announce their quarterly or annual profits.
It's like a report card. This week alone 180 companies are reporting.
Before a company reports, stock analysts predict what earnings will be. The extent to which a company meets, beats or misses those estimates can move the stock’s price significantly. (Last week Apple (AAPL) blew past estimates and the stock hit an all-time high. Shares are now trading around $400 per share. )
Collectively, we get a snapshot of the health of various sectors and corporate America as a whole. So far, 168 companies have beat estimates, 39 have missed and 20 have met estimates. Those are good results, says Christine Short of Standard & Poor's.
Should you care? Yes and no. As a long-term investor, getting caught up in short-term results will make you nuts. And buying a stock after dramatic earnings results means you're buying yesterday's news. What matters is the outlook going forward.
But if you're a company shareholder, this quarterly report card can help you gauge how your investment is doing. It won’t be beach reading, but it’s important to know what’s going on in the shop.
Join the crowd: How is this earning season affecting you and your investments?
Brokerage Products: Not FDIC Insured • No Bank Guarantee • May Lose Value
|
The content in this website with the exception of that provided by Charles Schwab have been provided by third-parties and/or prepared by DailyWorth who is not affiliated with, associated with or endorsed by Charles Schwab & Co., Inc. (“Schwab”). Therefore, the information contained within the content of the website that has not been prepared by Schwab should not be considered as approved, endorsed or recommended by Schwab. Schwab does not guarantee that the Information is accurate, complete or timely, nor does Schwab make any warranties to you regarding any results from using the Information. This also includes any links that DailyWorth provides as a courtesy to users of their website to third-party websites. Third-party websites are owned and operated by independent information providers (“IIPs”).
Interviews with Schwab employees created by DailyWorth are for general informational purposes only and should not be considered an individualized recommendation or investment advice. Investing involves risks, including the potential loss of principal invested. Keep in mind that diversification strategies, do not ensure a profit and do not protect against losses in declining markets and may not be suitable for you.
The content provided by Schwab is for general informational purposes only and is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, Schwab suggests that you seek professional assistance.
Charles Schwab & Co., Inc. (“Schwab”). All rights reserved. Member SIPC. (0413-2767)
