Earnings Announcement

AAA

DEFINITION of 'Earnings Announcement'

An official public statement of a company's profitability for a specific time period, typically a quarter or a year. An earnings announcement is typically made on a specific date during earnings season and is preceded by earnings estimates issued by equity analysts. When the company has been profitable leading up to the announcement, their share price will usually increase after the information is released.

INVESTOPEDIA EXPLAINS 'Earnings Announcement'

Because the earnings announcement is the official statement of a company's profitability, the days leading up to the announcement are often filled with speculation. Analyst estimates can be notoriously off-the-mark, and can rapidly adjust up or down the days leading up to the announcement. This can attract the attention of investors who take the estimates at face value, artificially inflating the share price on speculative trading.

RELATED TERMS
  1. Forward Looking

    A business slang term for predictions about future business conditions. ...
  2. Earnings Call

    A conference call between the management of a public company, ...
  3. Earnings Recast

    The act of amending and re-releasing a previously released earnings ...
  4. Announcement Date

    1. The date at which a company will announce the details regarding ...
  5. Earnings

    The amount of profit that a company produces during a specific ...
  6. Earnings Estimate

    An analyst's estimate for a company's future quarterly or annual ...
Related Articles
  1. The 5 Types Of Earnings Per Share
    Markets

    The 5 Types Of Earnings Per Share

  2. Earnings: Quality Means Everything
    Investing

    Earnings: Quality Means Everything

  3. The 4 Basic Elements Of Stock Value
    Markets

    The 4 Basic Elements Of Stock Value

  4. Earnings Guidance: Can It Accurately ...
    Economics

    Earnings Guidance: Can It Accurately ...

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center