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Earnings Announcement

What is 'Earnings Announcement'

Earnings announcement is an official public statement of a company's profitability for a specific time period, typically a quarter or a year. An earnings announcement is typically made on a specific date during earnings season and is preceded by earnings estimates issued by equity analysts. When the company has been profitable leading up to the announcement, their share price will usually increase after the information is released.

Explaining 'Earnings Announcement'

Because the earnings announcement is the official statement of a company's profitability, the days leading up to the announcement are often filled with speculation. Analyst estimates can be notoriously off-the-mark, and can rapidly adjust up or down the days leading up to the announcement. This can attract the attention of investors who take the estimates at face value, artificially inflating the share price on speculative trading.


Further Reading


Liquidity and the post-earnings-announcement drift
www.tandfonline.com [PDF]
… Announcements: Evidence From the SEC's EDGAR Log Files. Ruihai Li et al. Journal of Behavioral Finance Latest Articles. Published online: 28 Mar 2019. Article. Post-Earnings-Announcement Drift: The Role of Revenue Surprises. Narasimhan Jegadeesh et al. Financial …

Market liquidity and volume around earnings announcementsMarket liquidity and volume around earnings announcements
www.sciencedirect.com [PDF]
… Announcements: Evidence From the SEC's EDGAR Log Files. Ruihai Li et al. Journal of Behavioral Finance Latest Articles. Published online: 28 Mar 2019. Article. Post-Earnings-Announcement Drift: The Role of Revenue Surprises. Narasimhan Jegadeesh et al. Financial …

Event studies in economics and financeEvent studies in economics and finance
www.jstor.org [PDF]
… Announcements: Evidence From the SEC's EDGAR Log Files. Ruihai Li et al. Journal of Behavioral Finance Latest Articles. Published online: 28 Mar 2019. Article. Post-Earnings-Announcement Drift: The Role of Revenue Surprises. Narasimhan Jegadeesh et al. Financial …

Post-earnings announcement drift in Spain and behavioural finance modelsPost-earnings announcement drift in Spain and behavioural finance models
www.tandfonline.com [PDF]
… Announcements: Evidence From the SEC's EDGAR Log Files. Ruihai Li et al. Journal of Behavioral Finance Latest Articles. Published online: 28 Mar 2019. Article. Post-Earnings-Announcement Drift: The Role of Revenue Surprises. Narasimhan Jegadeesh et al. Financial …

An informational efficiency perspective on the post-earnings announcement driftAn informational efficiency perspective on the post-earnings announcement drift
www.sciencedirect.com [PDF]
… Announcements: Evidence From the SEC's EDGAR Log Files. Ruihai Li et al. Journal of Behavioral Finance Latest Articles. Published online: 28 Mar 2019. Article. Post-Earnings-Announcement Drift: The Role of Revenue Surprises. Narasimhan Jegadeesh et al. Financial …

Timing the disclosure of information: management's view of earnings announcementsTiming the disclosure of information: management's view of earnings announcements
www.jstor.org [PDF]
… Announcements: Evidence From the SEC's EDGAR Log Files. Ruihai Li et al. Journal of Behavioral Finance Latest Articles. Published online: 28 Mar 2019. Article. Post-Earnings-Announcement Drift: The Role of Revenue Surprises. Narasimhan Jegadeesh et al. Financial …

Security returns around earnings announcementsSecurity returns around earnings announcements
www.jstor.org [PDF]
… Announcements: Evidence From the SEC's EDGAR Log Files. Ruihai Li et al. Journal of Behavioral Finance Latest Articles. Published online: 28 Mar 2019. Article. Post-Earnings-Announcement Drift: The Role of Revenue Surprises. Narasimhan Jegadeesh et al. Financial …

The Relationship between Uncertainty about Information and Post Earnings Announcement Drift-Evidence from the Experiences of China's Listed Companies <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-GLSJ200603006.htm' />The Relationship between Uncertainty about Information and Post Earnings Announcement Drift-Evidence from the Experiences of China's Listed Companies [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-GLSJ200603006.htm'>PDF]
… Announcements: Evidence From the SEC's EDGAR Log Files. Ruihai Li et al. Journal of Behavioral Finance Latest Articles. Published online: 28 Mar 2019. Article. Post-Earnings-Announcement Drift: The Role of Revenue Surprises. Narasimhan Jegadeesh et al. Financial …

Investor Attention, Earnings Announcement Effect and Announcement Timing of Management <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-JRYJ201011009.htm' />Investor Attention, Earnings Announcement Effect and Announcement Timing of Management [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-JRYJ201011009.htm'>PDF]
… Announcements: Evidence From the SEC's EDGAR Log Files. Ruihai Li et al. Journal of Behavioral Finance Latest Articles. Published online: 28 Mar 2019. Article. Post-Earnings-Announcement Drift: The Role of Revenue Surprises. Narasimhan Jegadeesh et al. Financial …



Q&A About Earnings Announcement


When does the earnings announcement typically occur?

The earnings announcement occurs on a specific date during earnings season.

What happens in advance of the actual release of an earnings report?

Analyst estimates can be notoriously off-the-mark, and can rapidly adjust up or down days leading up to the announcement. This attracts speculative trading that artificially inflates share prices before it is released.

What is an earnings announcement?

An earnings announcement is an official public statement of a company's profitability for a specific time period.

How will the share price be affected by the release of an earnings report?

Share prices tend to increase after the information is released.

Why do companies make their announcements at this time?

Companies make their announcements to inform investors about how well they are doing financially.

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