earnings-reports

Earnings Reports: What They Are and Where to Find Them

Earnings reports are made up of three main categories: the income statement, the cash flow statement, and the balance sheet. When you put these three statements together, you will gain insight into the company’s net income, expenses, sales, and, most importantly, earnings per share (EPS).

Understanding earnings reports

Whether you are a beginner investor or you’ve been trading in the stock market for years, it can be helpful to know what earnings reports are and how you can access them.

Accessing a company’s quarterly earnings report can help you make informed decisions about buying, selling, or holding your shares.

This article will introduce you to earning reports and teach you how to access them.

All public companies are required to release their earnings reports every quarter.

This allows shareholders and future investors to obtain an exclusive look into their business and make decisions accordingly.

This is a mandatory step that companies must participate in to be listed on the stock exchange.

When Do Companies Release Earnings Reports?

After a quarter ends, a company has a total of 45 days to release its earnings reports. This period is known as earnings season.

Although companies can submit their reports at any time after the quarter ends, it typically takes a few weeks for earnings season to begin.

Here are the corresponding dates for each of the four quarters:

  • Q1 ends on March 31st. Companies have until mid-May to release first-quarter earnings reports.
  • Q2 ends on June 30th. Companies have until mid-August to release second-quarter earnings reports.
  • Q3 ends on September 30th. Companies have until mid-November to release third-quarter earnings reports.
  • Q4 ends on December 31st. Companies have until mid-February to release fourth-quarter earnings reports.

If you are curious about when a specific company is scheduled to report its quarterly results, you can head to an earnings calendar.

These can be found on plenty of investment sites, such as Nasdaq.

How To Access a Company’s Earnings Report

Accessing a company’s earnings reports is actually quite simple.

All you need to do is head over to the Securities and Exchange Commission’s website, SEC.gov. Here, you will find the SEC’s EDGAR search tool.

This tool allows you to search for financial reports from all publicly traded companies. All you need to do is type the company name into the search bar.

The SEC provides the public with the most complete and authoritative resource for all earnings reports. This resource has more than just quarterly earnings reports.

You can also access a company’s annual, 10-Q, and 10-K reports. If you want to do some research on a company before you decide whether or not it is a wise investment for you, this is where you can find all the information you need to know.

Key takeaway

As you can see, earnings reports are easy to access and give you vital information about where to invest your money.

By researching and looking into a company’s earnings reports before you decide whether to buy, sell, or hold, you can analyze how the business models of the companies you’re primarily interested in work!

Connected Business Concepts

Double-Entry

double-entry-accounting
Double-entry accounting is the foundation of modern financial accounting. It’s based on the accounting equation, where assets equal liabilities plus equity. That is the fundamental unit to build financial statements (balance sheet, income statement, and cash flow statement). The basic concept of double-entry is that a single transaction, to be recorded, will hit two accounts.

Balance Sheet

balance-sheet
The purpose of the balance sheet is to report how the resources to run the operations of the business were acquired. The Balance Sheet helps to assess the financial risk of a business and the simplest way to describe it is given by the accounting equation (assets = liability + equity).

Income Statement

income-statement
The income statement, together with the balance sheet and the cash flow statement is among the key financial statements to understand how companies perform at fundamental level. The income statement shows the revenues and costs for a period and whether the company runs at profit or loss (also called P&L statement).

Cash Flow Statement

cash-flow-statement
The cash flow statement is the third main financial statement, together with income statement and the balance sheet. It helps to assess the liquidity of an organization by showing the cash balances coming from operations, investing and financing. The cash flow statement can be prepared with two separate methods: direct or indirect.

Capital Structure

capital-structure
The capital structure shows how an organization financed its operations. Following the balance sheet structure, usually, assets of an organization can be built either by using equity or liability. Equity usually comprises endowment from shareholders and profit reserves. Where instead, liabilities can comprise either current (short-term debt) or non-current (long-term obligations).

Capital Expenditure

capital-expenditure
Capital expenditure or capital expense represents the money spent toward things that can be classified as fixed asset, with a longer term value. As such they will be recorded under non-current assets, on the balance sheet, and they will be amortized over the years. The reduced value on the balance sheet is expensed through the profit and loss.

Financial Statements

financial-statements
Financial statements help companies assess several aspects of the business, from profitability (income statement) to how assets are sourced (balance sheet), and cash inflows and outflows (cash flow statement). Financial statements are also mandatory to companies for tax purposes. They are also used by managers to assess the performance of the business.

Read next:

How To Read A Balance Sheet Like An Expert

Other business resources:

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