Earnings Report
An earnings report is a company's quarterly financial disclosure including revenue, profit, earnings per share (EPS), and forward guidance. Public companies release them four times per year.
Understanding the Concept
Earnings drive stock prices. Beat expectations? Stock often pops. Miss? Stock often dumps. But it's not that simple—guidance matters more than current results. A company can beat EPS but give weak guidance and still crash. Earnings season creates volatility and opportunities. Some traders play earnings directionally (betting on beat/miss). Others sell options premium (expensive before earnings, worthless after). Understanding earnings helps you time entries/exits and avoid being blindsided by sudden moves. Check earnings calendars before holding positions over announcements.
Real-World Example
Apple reports Q4 earnings. Analysts expect $1.20 EPS. Apple reports $1.35 (beat) and raises guidance. Stock gaps up 8% overnight. If you held shares, you're happy. If you sold calls, you might be losing money on assignment.
How Strykr Helps
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