New Earning Season: What To Expect?

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Jul 23 2018
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A new earning season is here and it will be stretching across July all the reports will inform investment decisions before October. The question is, what do we expect in this season and how will they impact on day to day business decisions? Also, is everyone ready for big surprises that are likely to get investors worried, not to mention outcomes that will raise the hopes of those looking forward to putting their money in the right places? Well, there is always a mixture of expectations during earning seasons like this July, and for students, it is that time when one should hire My HomeWork Done for the best business plan write-up or even a strategy write-up advising on the right stocks for the money.


This post will explore the new earning season in details, but before going into the details, here are a few things worth noting:


Things you need to know about earnings season

For those who are still trying to get a stranglehold on what this time of the year is all about, it is noteworthy that the months of January, April, July, and October mark the earning seasons every year. You can also refer to them as first, second, third and fourth quarters, a period during which companies make public, their corporate profits, taxes and loses? They follow an accounting or trading period, and the aim is to not only give the public a glimpse into a company’s standing in the corporate scene but also a legal requirement by which investors wishing to put their money on stocks are able to make the right investment decisions in the new quarter.


Breaking it down

Earning Season - American Flag

Given that it is arguably the busiest time of the year, market watchers are very keen on press releases from companies that are publicly traded. Financial analysts, in collaboration with company managers, also put forward guidelines and financial estimates following a fiscal year. According to economic experts, this period is vital to every business because it helps them strategize better for the next trading period.


How does the public get involved?

Well, at the onset of earnings period, the investor relations departments in companies, together with CEOs set up a call center, usually referred to as earnings call, through which members of the public seeking information can reach them. Areas of concern during this time of the year include changes in management, the financial standing of a company, issues of corporate governance, trends in the industry and legal matters that guide financial and trading conduct in companies.


Financial calculations for this earning period will take different approaches such as the following:

  • Earnings before interest and taxes (EBIT).
  • Earnings before taxes (IBT).
  • Earnings before interest, taxes, depreciation, and amortization (EBITDA). Financial analysts prefer this approach, especially when handling companies that have lots of fixed assets.


Any of the above approaches should be able to help analysts determine the intrinsic value of a company, in which case, whether their stocks are over-valued or under-valued. This information is to assist those who wish to hold, sell or buy stocks this quarter make the right decisions.


What to expect in this season

Now, having looked at the basics, here is what every trader should expect this season:

Watching Netflix

  • Netflix is a stock to watch this season as many analysts project up to 427% in spike earnings per share. The company has registered an earnings trend in triple digits in the last four quarters, and this season is not going to disappoint investors. While subscriber growth has taken a beating in the past months and the company has been aggressively marketing on social media platforms, its stock has been recouping despite unprecedented drops in a few weeks leading to this earnings season.
  • The world of wrestling entertainment has witnessed a steady growth in the last four seasons, and this time around, financial analysts project that the trend is to continue. The company triple digits earnings will see an increase of up to 121%.
  • Another stock to watch this earnings season is IBD 50 stocks encapsulating Viper Energy Partners (VNOM), Ligand Pharmaceuticals (LGND), Abiomed (ABMD) and Tech Target (TTGT). Projected figures from the last quarter will go up by up to 50%.
  • Other stocks that will register growth of above 50% include Costar, ServiceNow, Nextar Media, Quidel, and Twitter.
  • Investors have been writing off Twitter’s but the company’s rebound strategy has been impressive in recent seasons. The first quarter, for example, saw spike earnings per share rise to 129%. And now, analysts say there will be a 133% rise this new earning season.
  • Comerica Incorporated, also known as CMA is set to witness an increase in ESP after July 17thaccording to Zacks Rank. M&T Bank Corporation is also set to witness an increase in investor interest after releasing its quarterly earnings on July 18th.


In summary, during earning seasons, students pursuing financial accounting or economics have a rare chance of crafting a top quality MBA dissertation. They can focus on stocks to buy, reasons to buy or sell, among other factors that influence a company’s quarterly financial standing.

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