4. Fundamentals and earnings

Earnings season

Estimates, results, guidance, calls and analyst ratings.

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  • 5 lessons
  • 22 min
About this section

Four times a year each company reports: before it, analysts publish estimates; on the day, the result meets the consensus; after it, guidance, the call and the analysts' revisions set the next expectations.

What you will be able to do

  • Find when a company reports and how big a move options expect (ERN, EVTS).
  • Read estimates, the consensus, beats and misses, and the revisions after a report (EE, EM).
  • Read guidance and how it compares with the consensus (GUIDE, GUID).
  • Read an earnings-call transcript (CALLS) and analyst ratings and targets (ANR).

Five words to know

EPS
earnings per share: profit divided by the number of shares
consensus
the average of analysts' estimates
surprise
the gap between the result and the consensus
guidance
the company's own forecast for coming periods
revision
an analyst changing an estimate
  1. 01The earnings calendar and implied moves (ERN, EVTS)EVTS lists who reports this week with the move options are pricing and the move the stock usually makes, and ERN <ticker> shows one company's next report and its history.5 min
  2. 02Estimates, surprises and revisions (EE, EM)EE sets analysts' consensus estimates next to the results actually reported, and EM tracks how that consensus is being revised.4 min
  3. 03Guidance (GUID, GUIDE)Guidance is the company's own forecast, and GUID and GUIDE set it next to the consensus and track each guided number, its raises and cuts, and the actual result.4 min
  4. 04Earnings calls (CALLS)CALLS lists a company's earnings calls and opens each transcript with speakers, the analyst Q&A, a tone score, and the guidance and quotes pulled out of it.4 min
  5. 05Analyst ratings and price targets (ANR)ANR shows sell-side ratings and 12-month price targets: the average target and its history, the upside to it, and every recent action by firm.4 min

Educational material about reading market data, not investment advice.