The date and time that a company releases its earnings is very important because investors looking to buy or sell the particular security are counting on the information to help make a decision. When the earnings are released, the price of the security is almost always affected if it differs from the expected amount; this is often known as a surprise.

When an earnings deadline is missed, serious problems can occur in the stock market, as investors begin to worry about what might have caused the company to miss the deadline. Even if the reason is completely innocent, the notion that something MUST be wrong will always be in the back of investors' minds. Missing deadlines will almost always have a negative effect on the price of the stock, and volatility will surely increase.

However, stock exchanges have rules in place to protect investors from this volatility. For example, Nasdaq stock market rules say that missing a deadline could result in the market immediately suspending trading and delisting the company's common stock. This rarely happens, as companies are usually able to request an extension to get the financial statements released prior to being delisted.

If the company you own shares in has just missed its earnings deadline, it may not be reason to panic and dump the lot right away, but it should be a signal to watch it closely. You do not want to be left holding the bag if it turns out that the financial statements were delayed for a disastrous reason, such as accounting fraud.

Learn more about this in Strategies For Quarterly Earnings Season and The Flow Of Company Information.

  1. When is earnings season?

    Earnings season is the period of time during which a large number of publicly traded companies release their quarterly earning ... Read Answer >>
  2. I own shares of a company that just received a delisting notice from Nasdaq. Does ...

    Let's start by walking through the reasons for listing requirements and what happens when a company's stock is delisted from ... Read Answer >>
  3. If I have a number of stock shares and that company reports earnings of X amount ...

    Simply? Yes and no.Part of the answer to your question is "no" because when a company reports $X of earnings per share in ... Read Answer >>
  4. What is "hammering"?

    "Hammering" is a situation where large sale orders are placed against a particular stock because investors believe that the ... Read Answer >>
  5. How can I access a company's earnings report?

    Find out how to access the quarterly and annual earnings reports for publicly traded companies, and even how to listen in ... Read Answer >>
  6. Why do companies postpone earnings announcements?

    During the course of a fiscal year, a company will report earnings on a total of four separate occasions: three quarterly ... Read Answer >>
Related Articles
  1. Investing

    The Dirt On Delisted Stocks

    Listed securities are "the cream of the crop". Find out how a firm can lose that status and why you should be wary.
  2. Investing

    Everything Investors Need To Know About Earnings

    We go over the concepts behind the excitement over the most important figure in the stock market.
  3. Investing

    Strategies For Quarterly Earnings Season

    Breeze through consensus estimates like the biggest Wall Street forecasters.
  4. Investing

    Tips For When To Buy, Sell Or Hold

    Knowing how to make sound snap decisions is a must for any broker.
  5. Small Business

    Conference Calls: Press 1 For Investment Insight

    These calls can be an investor's most direct line to information about a company's operations.
  6. Investing

    Why Companies Delisted from Indexes Can Be a Buy (OI)

    Learn about a value-investing strategy that takes advantage of stocks that may represent a bargain when they're delisted from a benchmark index.
  7. Investing

    The Most Important Metrics For Earnings Season

    Knowing how to read an earnings report can help investors decide which stocks to buy.
  8. Taxes

    Get a 6-Month Tax Extension

    Discover how to get some extra time from the IRS, without paying a hefty penalty for the privilege.
  9. Investing

    Surprising Earnings Results

    Consensus estimates can send stocks spiraling - but are they representing reality?
  1. Delisting

    The removal of a listed security from the exchange on which it ...
  2. Accounting Earnings

    The amount of money a company has earned during a given period, ...
  3. Earnings

    The amount of profit that a company produces during a specific ...
  4. Street Expectation

    The average estimate of a public company’s quarterly earnings ...
  5. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. ...
  6. Earnings Surprise

    Occurs when a company's reported quarterly or annual profits ...
Hot Definitions
  1. Wealth Management

    A high-level professional service that combines financial/investment advice, accounting/tax services, retirement planning ...
  2. Assets Under Management - AUM

    The market value of assets that an investment company manages on behalf of investors. Assets under management (AUM) is looked ...
  3. Subprime Auto Loan

    A type of auto loan approved for people with substandard credit scores or limited credit histories. There is no official ...
  4. Racketeering

    A fraudulent service built to serve a problem that wouldn't otherwise exist without the influence of the enterprise offering ...
  5. Federal Debt

    The total amount of money that the United States federal government owes to creditors. The government's creditors include ...
  6. Passive Management

    A style of management associated with mutual and exchange-traded funds (ETF) where a fund's portfolio mirrors a market index. ...
Trading Center