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How to Analyze Earnings Reports in Four Easy Steps

xoma stock

Every investor needs to know how to analyze earnings reports.

Earnings reports are one of the most important tools an investor has. They measure a company's financial health and help investors gauge whether or not a stock is worth their money.

Here's our guide for analyzing earnings reports...

What Earnings Recession 2015 Means for Your Stocks

Earnings Recession

Earnings season unofficially begins on Wednesday, April 8, when Alcoa Inc. (NYSE: AA) reports Q1 earnings after the bell.

Now, most Wall Street prognosticators are bearish this earnings season. Countless headlines of “earnings recession 2015” have caused retail investors to wonder if they should exit the markets.

An “earnings recession” happens when earnings results decline for two consecutive quarters on a year-over-year basis.

It’s true, earnings are expected to disappoint across the board this quarter.

But this is not the time to flee the markets…

Three Earnings Season "Tells" You Need to See (and What They Say Now)

earnings season

We're in the middle of the first earnings season of 2015 and investors are anxious and confused. But Wall Street likes it that way.

The more confused you are, the more profitable they are. Investors who chase innuendo tend to trade more.

But it's not a waste of your time if you sort out the information that actually matters. Here's how...

Earnings Reports 2015: Next Week’s Top Results

Q4 earnings calendar

The beginning of January marks the start of Q4 earnings season.

Among the first ones up this year include an aluminum producer, a tech giant, and a few massive banking firms.

Here’s a look at each company on next week’s calendar of earnings releases.

GM Stock Closes Down 4.46% After Taking an 80% Profit Nose-Dive in Earnings

This morning (Thursday), General Motors Co. (NYSE: GM) reported second-quarter earnings. The market didn't like what it saw - GM stock sank by 4.46% to close at $35.74 per share.

Here is the big surprise from GM earnings, and how our expert recommends playing General Motors stock right now…

Q2 2014 Earnings Calendar

2014 earnings calendar

2014 earnings calendar for Q2 reports is full of can't-miss releases in July and August.

Take a look so you don't miss any key investment data - plus get all the Q2 2014 earnings analysis Money Morning has covered to date...

The "Earnings Beat" That's Perfect for This Market

commodities investing with Peter Krauth

Editor's Note: Bill Patalon's readers enjoy inside access to his regular consultations with Money Map Press editors. We're sharing this conversation with you today because the subject happens to lie at the intersection of several high-profit trends now. Here's Bill...

Last Wednesday, the Milpitas, Calif.-based SanDisk Corporation (Nasdaq: SNDK) reported first-quarter results that smashed analyst expectations, and the company's shares shot up 6% in after-hours trading.

But our Chief Investment Strategist Keith Fitz-Gerald saw that beat coming and put readers out in front of it.

Get Ready for Earnings Season – Wall Street's Quarterly Shell Game

It's earnings season. And for company players, the game is about trying to beat analysts' estimates, to get your company's stock to pop so you look better than your reflection.

But the game is rigged. And like high-frequency trading and so many other "institutionalized" games on the Street that are sucking the life out of other people's dreams, it's not illegal.

Here's how earnings are manipulated, and why it should be stopped...

JPMorgan (NYSE: JPM) Stock Price Up Today After Earnings

It hasn't been an easy year for JPMorgan: There was the London Whale scandal, which cost the Big Bank more than $6.2 billion. Fallout from the mortgage crisis brought a $13 billion fine. And just recently JPM had to shell out another $2 billion in fines for its role in the Bernie Madoff scheme. So earnings had to be awful, right? Not exactly.

Somehow, CEO Jamie Dimon pulled another rabbit out of his hat...

Alcoa Earnings Report Uneasy Start to Second Quarter (NYSE: AA)

Investors already have a cautious stance in the market amid growing fears about the world's biggest economies, and Monday's Alcoa (NYSE: AA) earnings report didn't help.

The aluminum producer, which always kicks off the earnings season, delivered more of a punt than a kickoff. The Dow bellwether reported an 81.3% drop in profits, as the global slowdown and production cuts weighed on profits.

Reporting after Monday's market close, Alcoa said income from continuing operations came in at $61 million, or 6 cents a share, on revenue just a hair under $6 billion. While significantly lower than the same period a year ago, the lackluster results still managed to beat Wall Street's tepid expectations (analysts were looking for 5 cents on revenue of $5.8 billion).

Chairman and CEO Klaus Kleinfeld said in a statement following the earnings release, "Alcoa maintained revenue strength amid solid liquidity by driving high profitability in our mid and downstream businesses and by reducing costs and improving performance in our upstream businesses."

Contributing to the profit decline was a global glut resulting from stagnant and slowing growth in many areas around the world, especially China.

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Earnings Death or Taxes

By Lee Adler

View original article here

Weak corporate tax collections in the first quarter and through April 11 could mean that many quarterly earnings reports may surprise the market by failing to meet analysts' inflated expectations. Either corporate profits are falling sharply or else corporations have suddenly become much savvier about offshoring income and avoiding taxes. While they may be getting better at avoiding taxes, it seems unlikely that they've suddenly all become such geniuses at it simultaneously. My bet would be that when everybody has reported, aggregate earnings will fall short of consensus estimates.

The Treasury Department publishes daily data on tax collections. As of 5 PM each weekday it releases the Daily Treasury Statement for the previous day. That's as close as we can get to a real time economic barometer short of being at the cash register. It's definitely useful in gauging whether subsequent corporate earnings reports will meet, beat, or miss expectations. Corporate tax collections and subsequent reported aggregate earnings have correlated well historically, not just in terms of the trend, but even to the extent that the peaks and valleys in tax collections are echoed at lower amplitude in the earnings line.

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