Companies need to make an earnings report which can be done either quarterly or annually. This is a predominant method for companies that are publicly traded in reporting its financial outcome for a given period.

Importance of Earnings Reports

Investors can make use of the earnings report of the company in gaining insights on how well the company performs and whether the company is being managed well or not.

On the other hand, it is essential to take note that these reports are usually presenting a rosy image of the financial situation of the company. Because of that, it is vital to know how to read and how to decipher the earnings report. This way, you will be able to separate the sales pitch of the management team from reality.

Everything to Generate Interests

In most cases, companies are issuing press release that highlights the contents of 10-Q. Oftentimes, the press release is containing nothing more than couple of informative paragraphs, statements from executives and outlining handful of key elements that may interests investors which include:

  • Net income
  • Cash flows
  • Earnings per share
  • Dividends and;
  • Revenue

At the same time, companies are likely to release presentation deck for its investors containing the success achieved from the period and some financial highlights too.