Earning Season by
Earnings Season If you are new to forex or trading in general, it is crucial to your trading career to have an idea what earning season is. With that, FXPMarkets.com presents a short guide for earning seasons. Earning season is the time period in which a huge amount of publicly traded companies issue their quarterly earnings reports. Earnings seasons start around one or two weeks after the last month of each quarter. Simply put, look for the majority of public companies to announce their earnings in early to mid-January, April, July, and October. It is crucial to remember that due to the exact date of an earnings report depends on when a company’s quarter ends, there will be some companies that will not report during earnings season so it isn’t unusual to see companies report their earnings between earnings seasons.
How earning season begins and finishes The unofficial open to earning season is the release of earnings by Alcoa, a big producer of aluminium and a component of the Dow Jones Industrial Average as it is one of the first major companies to issue earnings after the end of each quarter. It also happens to go along with an increasing number of earnings reports being released. Just like its opening, earnings season closes unofficially. However, it is considered to be finished when a majority of big companies have issued their quarterly earnings reports which occur around six weeks after the opening of the session. For example, you will see a rising amount of earning reports released in the second week in January for the 4th quarter because Alcoa usually issues their earnings report at the start of the second week. Approximately six weeks later, the number of reports will start to decline to pre-earnings season levels. There is only around over a month between each earnings season.
A very active period for any market Earning season is a very active time in the market as analysts, investors, and traders digest the earnings reports as it can affect their positions on or in a company. Oftentimes, market participants will witness a lot of activity in the shares of companies that are releasing reports as the market reacts to the new information. Shares surging or dropping by as much as 20% is within the realm of possibility at this point. Earning season is also a very active time for financial news outlets like CNBC and The Wall Street Journal. There is a very thorough coverage from the media on the major earnings reports from a general of the earnings to reporting on whether the companies have exceeded the expectations of analysts or otherwise.
In what numbers should we focus ? This is a tricky question because on each industry we are looking for different parameters. The most important general parameters are: EPS – earnings per share (how much value the company gave to its shareholders). Revenue – how much sales the company has made. Besides those number as we mentioned above, each industry has its own important numbers adding to the revenue and EPS, for instance - on growing online companies like Snapchat or Twitter we will search the growth in the number of users. In companies like Netflix, we will look for the growing number of subscribers and the market they came from.
FXPM analysis FXPM holds a special analysis department which focuses on investigating and learning each and every company in the market. The team measures how the company will perform in the upcoming earnings season and finally drawing a conclusion for her costumers use – which position has the best chances to gain before the report is published.
FXPM Performance at the last earnings During the last earning season, our analysis department had 78.3% accuracy in the earnings forecast which made up to 163% capital gain. Examples from last season: Snapchat – our recommendation was short before the bell, the report showed disaster for the stock value with a crash of -23% aftermarket! Visa - our recommendation was long before the bell, the stock opened in a gap of 3.22% which accumulate to 32.2% profit. Ferrari- our recommendation was long before the bell, the stock open in a gap of 7.5% which accumulate to 75% profit.
IMPORTANT RELEASE DATES 16-22/07/2017 24-29/07/2017 31/07 – 10/08/2017 Alphabet Inc (GOOGLE) Las Vegas Sands Facebook Halliburton Coca Cola Hasbro At&t Mcdonald’s 3m Company Caterpillar General Motors Barclays Boeing Paypal Ford Motor Nintendo Amazon.com Verizon Intel Mastercard Starbucks Exxon Mobil Apple Panasonic Pfizer Hsbc Holdings Tesla Sony Corp Phillips Procter & Gamble Time Warner Rio Tinto AIG Toyota Motor Siemens Allergan Adidas Berkshire Hathaway Allianz Walt Disney Mylan Alibaba Group Snap Inc Netflix Yahoo Johnson & Johnson Bank Of America Goldman Sachs Qualcomm Morgan Stanley American Express Alcoa Microsoft Visa Unilever Ebay General Electric
Click here to open account with FXPM What can traders get out of earnings season? With earnings season, traders have the opportunity to get a more in-depth look at a company in order to get a grasp of its performance which traders could use to their advantage. However, it is still advised to not take numbers from one-quarter completely at face value. FXPMarkets.com provides its clients the ability to trade not only forex but also stocks, indices, crypto-coins and commodities which mean you can allocate your capital to different assets other than forex. With FXPM, you can capitalize on each earnings season by utilizing our trading platform and experienced brokers. Click here to open account with FXPM