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Earnings season is when publicly traded companies disclose financial information to the public, usually following quarterly meetings with investors. It typically lasts up to six weeks and can impact share prices. Companies now make this information available on their websites and through web conferences.
Earnings season is the term used to identify various times of the calendar year when publicly traded companies disclose earnings information to the general public. Seasons of this type typically follow immediately after quarterly earnings meetings with investors. Traditionally, there are short seasons throughout the calendar year when most corporations make financial information of this type widely available through written documents, press releases, and the posting of information on corporate websites.
While there are some exceptions, earnings season for many corporations begins the month after the end of each business quarter. This means that once the last quarter of the year is complete as of December 31, earnings season will begin at the end of January. This short time between the close of a business quarter and the release of financial information to the general public allows the company to compile the data in formats that are easy to read and understand. The interim period also provides time for the date to be presented to shareholders before the information is released to various public media.
The length of any given earnings season will vary, depending on the number of companies that choose to disclose information in that particular season. Some companies publish data of this type every quarter, while others provide semi-annual financial data to the general public. In most cases, a particular earnings season is not likely to last more than six weeks, and can be as short as four weeks.
Regardless of the length of the earnings season, these periods are typically extremely busy times for industry analysts, brokerages, and investors. Published data can have a profound impact on the shares issued by a particular company, as well as the industry associated with the company. Analysts and brokers will look to use the data to determine if stocks will rise, fall, or stay at their current levels. These projections allow investors to decide whether to keep the current shares they own, purchase additional shares, or sell their shares of a given stock.
At one point, earnings season saw the mass distribution of paper documents to various news agencies, brokerage houses, and other interested parties. Since the advent of the Internet, many companies have chosen to make this type of information available on corporate websites, making it easy for anyone to access the data. Some companies also post audio recordings and web conferences of investor earnings meetings held with shareholders at the same time as or just prior to the release of earnings information to the general public.
Smart Asset.
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