An earnings call is a conference call between a public company, analysts, investors, and the media to discuss the company’s financial results.

Apple Inc. (AAPL) CEO Tim Cook on Q2 2021 Results - Earnings Call Transcript

Table of Contents
What Is an Earnings Call?
How an Earnings Call Works
Earnings Call & Forms 10Q and 10K Pros
Helps with fundamental analysis
Guides investors' decisions on trading
Allows participants to ask questions
Strains normal business operations
Q&A could produce unfavorable results
Must establish a regular cadence to prevent negative speculation
On April 28, 2021, Apple (AAPL) held its 2nd Quarter (2021) earnings call with CEO Tim Cook, CFO Luca Maestri, other company executives, and analysts from other large companies, such as Morgan Stanley, Evercore, UBS, and Bank of America.
Tim Cook and Luca Maestri discussed the company's outlook on future revenues, income, expenses, and plans for its capital. Fundamental Analysis
Pros and Cons of Earnings Calls
Example of an Earnings Call
Earnings Call FAQs
The Bottom Line
An earnings call is a conference call between the management of a public company, analysts, investors, and the media to discuss the company’s financial results during a given reporting period, such as a quarter or a fiscal year. In addition to the company's performance and outlook on revenues and expenses, they were asked how their plans for the U.S. economy would affect the company's expenses, to which Maestri reflected on the company's dedication to the goal, how much more revenues increased over its operations expenses in the prior quarter, and its plans to continue investing into the business. An earnings call allows a public company to discuss its past performance and future plans, as well as answer questions from analysts, investors, and media personnel.

Earnings Call

A quarterly earnings report is a quarterly filing made by public companies to report their performance. 

A quarterly earnings report is a quarterly filing made by public companies to report their performance. For example, if the company reports earnings growth from the prior period in its quarterly earnings report, but fails to meet or exceed the estimates published before the release, it may result in a sell-off of the stock. Some quarterly earnings reports include a brief summary and analysis from the CEO or company spokesman, as well as a summary of previous quarterly earnings results. For better or worse, a company's ability to beat earnings estimates projected by analysts or the firm itself is more important than the company's ability to grow earnings over the prior year. A quarterly earnings report is a quarterly filing made by public companies to report their performance.

Quarterly Earnings Report

Material news is news released by a company that might affect the value of its securities or influence investors' decisions.

Listed Company Compliance Guidance for NYSE Issuers—January 14, 2021

Listed Company Compliance Guidance for NYSE Issuers—2018

Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing of Proposed Rule Change to Amend Section 202.06 of the NYSE Listed Company Manual to Prohibit Listed Companies From Issuing Material News After the Official Closing Time for the Exchange’s Trading Session Until the Earlier of Publication of Such Company’s Official Closing Price on the Exchange or Five Minutes After the Official Closing Time

Material news is news that a company releases that might affect the value of its securities or influence investors' decisions. To avoid pricing disruptions when the NYSE closing auction is delayed more than five minutes, Section 202.06 as amended will continue to include advisory text requesting that companies avoid issuing material news until 15 minutes after the NYSE’s official closing time, or earlier publication of the company's official closing price.
The NYSE publishes its Listed Company Compliance Guidance annually, which should always be consulted for any changes in any NYSE policy. Material news is the company's price-sensitive information announced publicly to shareholders, while material insider information is material information about certain aspects of a company that has not yet been made public, but that will have an impact on the company's share price once released. This delay is meant to avoid investor confusion in cases where trading on other markets continued after the close of trading on the NYSE, and information released by a company after the close of trading on the NYSE caused differences between the NYSE closing price and trading prices on other markets. On Dec. 4, 2017, the NYSE changed its rules to prohibit listed companies from issuing material news after the close of trading, which is 4 p.m. Eastern Time, until the earlier of the following scenarios: publication of the company’s official NYSE closing price or five minutes after the close of trading.

Material News

Profit warning occurs when a company advises shareholders and the public that its earnings results will not meet analyst expectations. A company generally issues a profit warning prior to the public announcement of its official earnings results.

Profit warning occurs when a company advises shareholders and the public that its earnings results will not meet analyst expectations. A profit warning may occur if the company is in a down business cycle; however, since this event is more expected it is often due to poor performance or a single challenging incident either internal to the company or external from the industry or business environment. If a company does not issue a profit warning, its earnings announcement is called a negative earnings surprise. A company generally issues a profit warning prior to the public announcement of its official earnings results. Following a profit warning usually comes the company’s official earnings announcement.

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