Earnings reports are some of the most important sources of information available to stock investors. They give important details about the current state of a business, reveal important financial information, and may include forward earnings and revenue projections, as well as commentary by the CEO or other company leaders.
If you're invested in a particular stock, reading its quarterly and year-end earnings reports is one of the smartest things you can do to make sure that your investment is still a good investment. If you aren't invested in a company, reading through its recent earnings reports can help you analyze profitability, growth, financial conditions, and other important pieces of information to make informed decisions about whether a company would be a good fit for your portfolio.
Understanding earnings reports
Understanding earnings reports
Earnings reports are (usually) quarterly releases that provide important details on a company's business operations and updated financial statements. Publicly traded companies in the United States are generally required to issue earnings reports once per quarter to disclose and discuss their quarterly and full-year business results to the investing community.
Earnings reports must be issued in a timely manner after the end of the period being reported. Most (but not all) companies release their earnings reports within three to seven weeks after the end of the fiscal quarter. This period that occurs after each calendar quarter is often referred to as earnings season.
For example, in a company's earnings report, you can find information on its revenue (also known as top line) and earnings (bottom line), as well as how specific parts of the company performed. For example, in Amazon's quarterly earnings report, you can learn how the company's e-commerce business and Amazon Web Services (AWS) businesses each performed.
Retained Earnings
Most companies provide commentary from senior leadership on the results and also provide valuable context about future growth initiatives. Many provide forward projections, or guidance, which tells investors how management foresees the business performing in the coming quarter or for the full year.
Finally, you'll get an updated version of the three key financial statements companies are required to issue: the income statement, balance sheet, and cash flow statement. All three of these can provide valuable information for investors to use in their analysis of how a business is performing.
Upcoming reports
Upcoming critical earnings reports in 2024
There are thousands of stocks that trade on the NYSE and Nasdaq exchanges in the United States and thousands more that trade on over-the-counter (OTC) markets and on international stock exchanges. So, it's not possible for us to discuss all of them. However, here's a list of some of the most closely followed companies when it comes to earnings reports and when investors can expect to hear from them next.
| Name (Ticker Symbol) | Market Cap |
Upcoming Earnings Date |
|---|---|---|
|
Amazon.com (NASDAQ:AMZN) |
$1.93 trillion | 8/1/2024 |
|
Tesla (NASDAQ:TSLA) |
$559 billion | 7/17/2024 |
| Microsoft (NASDAQ:MSFT) | $3.16 trillion | 7/23/2024 |
| Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) | $900 billion | 8/5/2024 |
| Nvidia (NASDAQ:NVDA) | $2.33 trillion | 5/22/2024 (actual) |
| C3.ai (NYSE:AI) | $3.2 billion | 5/29/2024 (actual) |
| Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG) | $2.23 trillion | 7/23/2024 |
| Shopify (NYSE:SHOP) | $75.5 billion | 7/31/2024 |
| Block (NYSE:SQ) | $45.0 billion | 8/1/2024 |
| Meta Platforms (NASDAQ:META) | $1.19 trillion | 7/24/2024 |
It's important to note that most companies don't announce their earnings release date until a few weeks before it happens. In many cases (including in the table above), earnings dates that are a month or more in the future are approximate and are based on the company's previous earnings release activity.
Fiscal Quarter
Recent reports
Recent important earnings reports
For the 10 stocks in the earnings calendar chart in the previous section, here's a rundown of how things went the last time they reported earnings:
1-3
1. Amazon.com
Amazon (AMZN -1.61%) reported its first-quarter earnings on Apr. 30, 2024, and the results were generally strong. Earnings and revenue both surpassed analysts' expectations, and the company’s cost-cutting efforts resulted in excellent profit margin growth. In fact, operating income grew by more than 200% year over year. Looking to the second quarter, Amazon expects year-over-year revenue growth of 7% to 11%.
2. Tesla
In the first quarter of 2024, Tesla (TSLA -0.4%) reported a 9% year-over-year decline in revenue, missing analysts' expectations. Plus, earnings were a bit weaker than expected, and there's still a lingering fear that automakers will generally lose pricing power on electric vehicles as more new models roll out. However, the stock responded positively as CEO Elon Musk gave an optimistic update on future Tesla products, particularly its long-awaited affordable EVs.
3. Microsoft
In its fiscal third quarter of 2024 (its fiscal year ends June 30), Microsoft (MSFT 0.11%) reported $61.8 billion in total revenue, which was above expectations. However, the company's forward guidance didn't quite meet expectations. On the bottom line, Microsoft's earnings came in better than expected, with $21.9 billion in net profit. Revenue growth in the Azure cloud services business was especially strong, and management said that artificial intelligence (AI) demand is incredibly high right now.
4 - 6
4. Berkshire Hathaway
Berkshire Hathaway (BRK.A 1.57%)(BRK.B 1.42%) is one of the few companies that always reports earnings on Saturdays, as management wants the market to have time to digest it before trading opens on Monday. In the first quarter of 2024, Berkshire reported strong year-over-year growth in its operating businesses, especially when it comes to the large insurance operation. The conglomerate also reported an all-time high of about $189 billion of cash and short-term investments on its balance sheet. We learned that Berkshire was a net seller of stocks and unloaded billions of dollars' worth of Apple (AAPL 0.5%) stock from its massive stake in the tech giant.
5. Nvidia
In the fourth quarter of its 2024 fiscal year, graphics chipmaker Nvidia (NVDA -0.79%) reported both revenue and earnings that handily surpassed expectations. The company has been a major beneficiary of the surge in AI investment, and this has been fueling rapid growth in recent quarters. In fact, Nvidia's revenue was a staggering 265% higher than it was in the year-ago quarter.
6. C3.ai
Artificial intelligence has been one of the most closely watched tech trends of 2024, and C3.ai (AI 3.5%) is one of the most notable players in the space. In the third quarter of its 2024 fiscal year (ended on Jan. 31), C3.ai reported revenue that grew by 18% year-over-year, with 23% growth in subscription revenue (which makes up 90% of the total). The company's forward guidance calls for strong sequential revenue growth, and management raised its full-year expectations. The company also reported $723 million in cash on its balance sheet and positive free cash flow, which gives the business financial flexibility while it grows.
7 - 10
7. Alphabet
In the first quarter of 2024, Alphabet (GOOGL 0.23%)(GOOG 0.23%) (better known for its main business, Google) reported both earnings and revenue that handily exceeded analysts' expectations. Its fast-growing Google Cloud and YouTube advertising businesses both surpassed expectations individually. Alphabet's management also surprised investors by announcing a new $70 billion share buyback authorization, as well as the company's first-ever quarterly dividend.
8. Shopify
E-commerce service platform Shopify (SHOP 1.04%) beat expectations on both the top and bottom lines in the first quarter of 2024, but the company's forward guidance disappointed investors. Gross merchandise volume from Shopify customers soared by 23% from year-ago levels, and payment volume through the platform was quite strong. However, the call for a revenue growth slowdown was enough to scare investors in this richly valued company.
9. Block
Despite fears of lower consumer spending, fintech giant Block (SQ -1.45%) (formerly Square) reported solid first-quarter 2024 results throughout its business. Gross profit increased by 22% year over year, and both revenue and EPS came in ahead of analyst expectations. Plus, Block increased its forward guidance for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Block's Cash App now has over 57 million active users and reported 25% year-over-year gross profit growth.
10. Meta Platforms
Meta Platforms (META -0.05%), better known by its former name, Facebook, reported first-quarter 2024 earnings that beat expectations on both the top and bottom lines, but disappointed investors with its forward guidance. For the second quarter, the company is expecting 18% year-over-year revenue growth at the midpoint of its guidance range, which would be a significant slowdown from the 27% growth it reported for the first quarter. Plus, Meta increased its guidance for full-year capital expenditures due to accelerated AI investment.
Related investing topics
Why are they important?
Why are earnings reports important?
Earnings reports are important to investors because they provide lots of important insight into the current state of the companies you invest in, as well as clues about where those companies could be heading in the future. Among other things, earnings reports can help you spot growth trends, profit margin growth or contractions, balance sheet health, and how management expects the business will perform going forward.
It's also important to note that earnings reports generally coincide with a conference call with the company's management team and analysts who cover it (also known as an earnings call). These can also be worth listening to, as the company's CEO, CFO, and other key executives can provide context and commentary about the numbers you read in their earnings report.
Earnings Call
In a nutshell, with most U.S. companies, earnings reports are the most up-to-date look at a company's business and financials investors get. Reading the most recent earnings report is an important part of doing ongoing due diligence as a buy-and-hold investor and can help you find new investment opportunities as well.
FAQ
Earnings Reports FAQs
What time are earnings reports released?
There's no specific rule governing the timing of earnings reports, but most companies choose to release their results within a few hours before or after the stock market is open. Most earnings reports are released in the 6 a.m. to 8:30 a.m. ET or 4 to 5 p.m. ET windows, but there certainly are exceptions.
Where can I find earnings reports?
There are a few places where you can find earnings reports. The easiest place is typically on the company's investor relations page, but you can also look at the company's SEC filings. Alternatively, if you have a brokerage account, you can typically see all recent news (including earnings releases) in a company's news feed.
How much do earnings reports affect stock prices?
Earnings reports can certainly influence stock prices, but this isn't always the case. If a company misses expectations on earnings or revenue, reports an unexpectedly strong or weak quarter, or issues future guidance that is either worse or better than expected, its stock price could move sharply in one direction or the other. On the other hand, if a company's earnings report is completely lacking in surprises, it's entirely possible for a stock to barely budge after earnings.
