Newsletter Login

Username:

Password:


Need help logging in?

New Subscriber?
Start Here!

Q & A


Each earnings season, it seems that one or two of my stocks will deliver profits and sales that beat Wall Street expectations, then tumble on...



Read More from Q&A


Tools & Resources

Real Questions from Real Subscribers


Q: Each earnings season, it seems that one or two of my stocks will deliver profits and sales that beat Wall Street expectations, then tumble on the news. Sometimes, a stock posts disappointing results but surges on the report. What gives?

A: Dear Subscriber,

The Securities and Exchange Commission has required quarterly earnings reports since the early ’70s. For a long time, simply beating analyst estimates would help propel a stock higher, while weak results would torpedo a stock. Today, more companies offer guidance about expected sales and earnings – critical projections that drive expectations for investors.

Note that earnings guidance is voluntary and isn’t required by the SEC. Nevertheless, many companies choose to provide the information. We encourage investors to continue reading past headline results or the first paragraph or two of an earnings release, as companies often present their guidance deeper into the report. In some cases, company guidance comes not from the release, but from the conference call, in which case you can read about it in the financial media or listen to the call yourself on the company’s website.

 

Thanks for your interest,

Bob Sweet, CFA
Managing Editor, Dow Theory Forecasts

More Investment Newsletters and Services

Drip Investor

DRIP Investor — how you can buy dividend-paying stocks without a broker.

Visit us at DRIP Investor, your source for dividend reinvestment plans.

Lazy Investor

The Lazy Investor — free weekly e-letter that delivers market updates and stock market information via email.

Visit us at The Lazy Investor, our free investment newsletter.

Horizon Investment

Horizon — registered investment advisor seeks to provide investors at all stages the ability to build, preserve and enjoy wealth.

Visit us at Horizon Investment Services to get started in an investment program that's right for you.

Upside

Upside — discovers today's small and midcap stocks poised to be tomorrow's Blue Chip leaders.

Visit us at Upside, your guide to the best buys in small and midcap stocks.

Current Hotline

Friday, May 17, 2019

In the financial media, doom-and-gloomers love to talk about the terrible trade war between the U.S. and China

Read More from the Hotline

Stock Spotlight

Let SS&C handle the plumbing

Wednesday, May 15, 2019

Infrastructure for businesses is like the plumbing in a house — mostly unseen but essential. For technology companies, the infrastructure might be data centers. For natural-gas companies, it might be pipelines. For many financial...

Read More from Stock Spotlight

Individual Stock Reports

ISRs make stock research easy!

Perhaps the most valuable two page reports available anywhere.

All the data you would normally have to plow through years of 10-K filings, earnings reports, and reams of market data to assemble — yours all in one concise report.

ISRs contain our proprietary Quadrix scores — find out how we rate all the stocks in the S&P 500.

Visit us at individualstockreports.com