Earnings Season

Earnings season is the busiest period in financial markets, when thousands of public companies release their quarterly financial results. Most companies report within 45 days of quarter end, creating concentrated windows of financial information and stock price movements.

The critical data points in an earnings report include: revenue (top-line sales), earnings per share (EPS), forward guidance (management's outlook for future quarters), and key business metrics specific to the company. Markets react not just to the absolute numbers but to how they compare with analyst expectations.

Earnings surprises — results significantly above or below consensus estimates — can move stocks 5-20% in a single day. Companies that beat expectations on both revenue and EPS typically see positive reactions. Missing on either can trigger sharp declines. The post-earnings reaction often sets the trading range for the next quarter.

The largest companies (Apple, Microsoft, Amazon, Google) report on specific dates that become market-wide events. Their results can move the entire market because they're significant index components and their performance reflects broad economic trends. Weeks where multiple mega-cap companies report are called "super earnings weeks."

For portfolio tracking, earnings season creates the most volatile period for stock holdings. Pre-earnings, implied volatility on options rises (making puts and calls more expensive). Post-earnings, the IV crush rapidly deflates option prices. Understanding earnings dates for your holdings helps you anticipate and contextualize portfolio volatility.