Beginners and those who have just entered into stock investing should know in details about the earnings season. This will not only give them with immense confidence, but also help to take the right decisions, to minimize losses and maximize gains.
What is earnings season?
The timing of release of quarterly reports by larger public companies is considered as Earnings Calendar. According to the industry experts, the earnings season is said to begin 1-2 weeks after last month of quarter. The earnings season for example, is likely to be after 1-2 weeks after March. This means after 1-2 weeks after completion of the first quarter. Earnings season starts on the completion of each quarter, which is January, April, July & October months.
Why the need to know about earnings season?
Investors on using the earnings seasons can check out the company figures that they are interested in and invest at the right time or wait for the appropriate time. Investors do find the earnings reports released by the major public trading companies to be beneficial in making the correct investment decision. However, one particular aspect to understand is that not every public trading company tends to release its earnings report during this time.
Quarterly reports are released by big companies on market closing, which means prior to opening of the stock market (approx. 7am) or after closure of the stock market (approx. 4pm). Big companies maintain this timeframe for a particular reason, which is to reach good number of investors possible. If reports are released when stock market is conducting its business, then investors are likely to miss out the reports. Moreover, if reports are released during off-time, then investors are likely to get sufficient time to understand the figures and invest accordingly.
Even a small piece of information is likely to change the stock market course of the company’s future result. To know companies better performance, quarterly reports have proved to be invaluable.
How to use the season to make huge profits?
It is quite natural for investors to ask this question. Below are given few approaches that one should take to make good profits.
- Best time for making good money: During this season, it is possible to get plenty of tradable information which affects stock market. With the stock market price shifting due to new information, investors can sell and buy stocks at the right time.
- Important earnings season of the year: The experts conclude that the 3rd earnings season is crucial. Although definite explanation does not exist, it could that this period causes some market shake-up. Companies during this time are close to year end and investors will be interested to make good money. Also the period experiences ups and downs in the stock market. Two significant industries, namely, tech and consumer discretionary do have huge demands at this time.
- Own diligence needed: It is necessary to undertake proper research and gain knowledge in the domain to get more profits. Beginning with company financial statements and financial ratios will be a wise decision. Start investing with small amounts and take expert help when going big.
Therefore, going through the above aspects and taking proper and timely decisions will help the investor to enjoy long time profits in the stock market.