The period when the bulk of companies release their quarterly or yearly results is commonly referred to as “earnings season”. Market participants view earnings performance as the primary measuring stick on how a company has performed relative to analysts’ estimates (i.e., the past). The second element that is closely followed is the forward-looking guidance and commentary that’s normally provided by management on an “earnings call” that follows the numbers. The latter allows analysts to submit questions to management which in turn sets analyst expectations for subsequent quarters (i.e., the future).
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By Charles Marleau CIM® and William Mitchell CIM®
By Charles Marleau CIM® and William Mitchell CIM®
