Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Earnings Call

What it is:

An earnings call is a public announcement, usually via conference call, of a company's profits, usually on a quarterly basis.

How it works (Example):

Company XYZ is a public company. As such, it must file a 10Q every quarter with the Securities and Exchange Commission. At that time or just before, Company XYZ will also issue a press release announcing significant components of its financial performance (especially profit margins) and any noteworthy items. It will also host a publicly available conference call to relay this information and answer questions from analysts.

Why it Matters:

Earnings calls are often the first pieces of definitive information that investors and analysts get regarding a company's financial performance for the quarter or year. They are also the first time analysts get to ask about the results and request comment or further insight from management. Analysts and investors pay special attention to earnings calls and even plan trades around them.
 

Related Terms View All
  • Auction Market
    Though most of the trading is done via computer, auction markets can also be operated via...
  • Best Execution
    Let's assume you place an order to buy 100 shares of Company XYZ stock. The current quote...
  • Book-Entry Savings Bond
    Savings bonds are bonds issued by the U.S. government at face values ranging from $50 to...
  • Break-Even Point
    The basic idea behind break-even point is to calculate the point at which revenues begin...
  • Calendar Year
    If Company XYZ starts its fiscal year on January 1 and ends its fiscal year on December...