An earnings report is a financial statement that provides a detailed summary of a company's financial performance over a specific period, typically a quarter (3 months) or a year. It is a key component of a company's financial reporting and plays a crucial role in informing investors, analysts, and the public about the company's profitability and overall financial health.
The earnings report includes various financial metrics, such as revenue, net income, earnings per share (EPS), operating expenses, gross margin, operating margin, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), and cash flow.
Earnings reports are typically released on a quarterly basis for publicly traded companies and are subject to regulatory requirements, such as filing with the Securities and Exchange Commission (SEC) in the U.S. Investors, analysts, and financial media closely monitor these reports because they provide insights into a company's financial trajectory, growth prospects, and overall business performance. Positive or negative surprises in earnings reports can significantly impact a company's stock price and investor sentiment.