If the earnings report is positive, demand for the company’s is likely to increase. If, however, it is negative, investorsWhat are value stocks? A value company is a company that app... More may react by selling the company’s sharesWhat are value stocks? A value company is a company that app... More.
Earnings reports can be issued quarterly, every 6 months or once a year.
What information does an earnings report contain?
An earnings reportAll public companies periodically release an earnings repo... More can contain a lotIn forex trading, a lot is the standard unit to measure the... More of information but the key areas to focus on include:
– this shows the amount of profit as allocated to each share. The higher the EPS, the more demand there will be for the company’s shares.
Revenue – this is the total amount of income generated by the company. The higher the revenue, the more demand there will be for shares.
Net income – this is the amount of moneyMoney is a generally accepted medium of exchange to buy and... More the company has made after subtracting its costs. The higher the net profit, the more demand there will be for shares.
InvestorsWhat are value stocks? A value company is a company that app... More will often compare the data provided with previous earnings reports for that company. They can then use the available information to make a judgement about whether or not the company represents an attractive investmentInvestment is the commitment of money or capital to purchase... More opportunity.
For a more detailed introduction to company earnings reports, read our lesson:
