Finance
How do company earnings reports work?
An earnings report is a public company's regular update on how it performed financially — usually each quarter. It reveals revenue, profit, and outlook, and investors compare the results to expectations, often moving the stock sharply up or down.
See it in motion.
Watch a 2-minute animated lesson that shows exactly how earnings reports works.
Step by step
- 1Public companies report results regularly (often quarterly).
- 2They show revenue, profit, and future guidance.
- 3Investors compare results to expectations.
- 4Surprises can move the stock price sharply.
Frequently asked questions
- How do earnings reports work?
- Public companies periodically publish their financial results, which investors compare to expectations.
- Why do stocks move on earnings?
- Prices react to whether results beat or miss expectations, and to the company's future guidance.
- How often are earnings reported?
- Typically every quarter, plus a fuller annual report.