What Earnings Season Is

How public companies report results every quarter, when reports and conference calls happen, and why the weeks of earnings season move markets.

Four report cards a year

Public companies in the United States report their financial results every quarter. Each report is like a report card: how much the company sold, how much it earned, and what it expects next. Because so many companies report in the same few weeks after each quarter ends, these stretches are called earnings season.

The rhythm of the season

Most companies end their quarters in March, June, September and December. Reports start arriving a couple of weeks later, often led by the big banks, and the busiest weeks follow soon after. Companies with fiscal years that end in other months report on their own schedules, so there are earnings reports in almost every week of the year.

What a company releases

Timing: before the open or after the close

Most companies release results outside regular trading hours, either before the market opens or after it closes. That gives investors time to digest the news, but it also means the stock’s reaction often shows up as a gap at the next regular session’s open. Trading in the extended-hours session can be thin and volatile while the news is absorbed.

Release timeWhen the main reaction usually appears
Before the openAt that morning’s open
After the closeIn after-hours trading, then at the next day’s open
During market hours (rare)Immediately, sometimes with a trading pause

Most companies announce their report dates weeks in advance.

Why the season matters

Earnings are one of the biggest drivers of stock prices over time, and each report updates the market’s view of a company’s future. Individual stocks can move 10% or more in a day on a report. Results from giant companies can also move whole sectors and the major indexes, because investors use them as clues about the broader economy.

Staying ahead of the calendar

The most basic earnings habit is simply knowing when your stocks report. Many painful surprises happen to traders who didn’t realize a report was due. Check the earnings date before you enter any trade, and note it in your plan. The earnings board and calendar on the Market Jukebox Trade Desk show upcoming reports so you are never caught off guard.

A typical report day

On report day, the release usually comes out shortly before the open or soon after the close, and the conference call often follows within a few hours. Headlines hit news feeds within seconds. The stock often starts moving in extended-hours trading as investors digest the numbers, and it can swing again during the call as management answers questions.

Why big banks go first

Large banks are often among the first to report each season. Because banks lend to consumers and businesses across the economy, their comments on loan demand, credit quality and spending give investors early clues about how the rest of the season may go.

Earnings season and the overall market

During the busiest weeks, the market can become more volatile as hundreds of companies report. Strong results from market leaders can lift the indexes; disappointments from a few giant companies can drag them down. Outside earnings season, economic data and interest rate news often take center stage instead.

Common mistakes

Build an earnings calendar habit

Each week, check which of your holdings and watchlist stocks report in the next two weeks. Note the dates in your journal and decide in advance how you will handle each one.

Key takeaways

See upcoming earnings