An earnings report is a document that shows how much money a company made, spent, and earned as profit over a specific period, usually a quarter or a year. Public companies issue these reports regularly so investors and regulators can see how the business is performing financially.
Basic definition
An earnings report summarizes a company’s revenues, expenses, and profit or loss for a defined time period. It is often associated with the income statement and may also be called a profit-and-loss statement or statement of income in that context.
What it usually includes
For public companies, an earnings report typically bundles several key financial statements: the income statement, balance sheet, and cash flow statement. It often also includes management commentary, important metrics like earnings per share (EPS), and sometimes guidance about future expectations.
Why it matters
Investors and analysts use earnings reports to judge a company’s profitability, financial health, and growth prospects, and to compare results with previous periods. Because these reports can beat or miss market expectations, their release often moves the company’s stock price up or down.
