What is an earnings report?
In the US, public companies report their financial results four times a year — one report for each three-month period (many other markets require only half-yearly reporting). These are called earnings releases, quarterly reports, or just earnings. Together, four quarters make up the company's fiscal year.
The document typically includes revenue, profit, earnings per share, margin data, segment breakdowns, and — crucially — a forecast for the period ahead. That forecast is called guidance, and it is often more important than the reported numbers themselves.
The five sections to check first
A real earnings release can run to dozens of pages. In practice, experienced investors focus on five numbers in the first ten minutes. Click each section below to understand what it measures and why it matters.
Real figures from Apple's fiscal Q1 2024 release. Source: Apple Newsroom — Q1 FY2024 results. Estimate columns are the contemporaneous Street consensus.
Key terms — tap each card to reveal the definition
These six terms appear in every earnings release and every analyst note. Make sure you could explain each one to a friend before moving on.
Beat, miss, and in-line — what actually happens to the stock
The most confusing thing for new investors is that a company can report record profits and still see its stock fall. The reason: markets price expectations, not results. The first scenario below is Apple's actual quarter from the report above; the other three are hypothetical variations on the same estimates, to show how the reaction changes when the actuals or guidance differ.
Four core earnings outcomes
Revenue
Est. $117.9B
$119.6B
+1.4% above est.
EPS
Est. $2.10
$2.18
+$0.08 above est.
A strong catalyst on the headline — but this quarter the stock actually slipped, because forward guidance was only flat and China was soft. A double beat usually rises, especially if guidance is also raised; it is not a guarantee.
The magnitude of the beat matters — a penny beat rarely moves stocks; a clear beat does. But guidance and regional detail can override even a clean double beat.
The five-step reading framework
You can read any earnings release in under ten minutes using the same five steps every time. We apply this framework in full in Lesson 3. For now, commit the order to memory. Prefer a standalone reference outside the course? See the explainer on how to read an earnings report.
Revenue — did the top line beat, miss, or land in-line?
Check the absolute number and the YoY growth rate. Strong revenue growth is the foundation.
EPS — same check, but for the bottom line
Diluted EPS vs. consensus. Note whether the beat came from higher revenue or cost cuts (margins).
Gross margin — is the business getting more or less efficient?
Expanding margins on flat revenue often means more than accelerating revenue on shrinking margins.
Segment performance — where is growth coming from?
High-margin segments matter more than headline revenue. A slowdown in a high-growth segment is a red flag.
Guidance — what does management expect next quarter?
Read the absolute range AND compare it to current consensus. This step often moves the stock more than steps 1–4 combined.
Where to find each number
Knowing what to look for is half the job; knowing where to look is the other half. A single earnings event produces three separate documents, each released at a different time and serving a different purpose.
Document
When it lands
What it holds
Press release / 8-K
When it lands
Earnings day (BMO or AMC)
What it holds
The headline numbers — revenue, EPS, margins, segment summary and guidance. The fastest read.
Filed with the SEC as an 8-K and posted to the company site at the same moment. This is what moves the stock.
10-Q / 10-K
When it lands
Same day to a few weeks later
What it holds
The full financial statements with footnotes — the complete income statement, balance sheet and cash-flow statement.
The detailed SEC filings: the 10-K (annual) is audited; the 10-Q (quarterly) is reviewed but unaudited. Where you go for the numbers behind the headline.
Earnings-call transcript
When it lands
~1 hour after the release
What it holds
Management's prepared remarks and the analyst Q&A — the colour, context and tone behind the numbers.
The Q&A often contains more signal than the press release, because it pushes management off-script.
All three are published on the company's Investor Relations (IR) page — usually under a heading like “Quarterly Results” or “News & Events.” The same filings appear on the SEC's free EDGAR database. You never need a paid terminal to read a primary earnings document; the IR page and EDGAR are both public.
One detail that trips up newcomers: the timing label. BMO means “before market open” — the company reports a few hours before the 9:30 a.m. ET bell. AMC means “after market close” — it reports after the 4:00 p.m. ET close. Either way, the biggest price reaction usually happens in pre-market or after-hours trading, before most investors are even watching.
Check your understanding
Two quick questions to make sure the core ideas are locked in.
A company reports EPS of $2.18 against a consensus estimate of $2.10. What happened?
Revenue beats consensus. EPS beats consensus. But management lowers guidance for next quarter. What typically happens to the stock?