Q3 2022 Earnings Season Explained

Olymp Trade Team

What Will You Find in the Earnings Report?

Essentially, the earnings report is a document that says how that company has been performing over the last three months and its future projections. In it, you will find various indicators such as sales, revenue, and earnings per share.

How Do Earnings Reports Affect Stock Prices?

The general logic of how the market reacts to each company’s report is as follows:

If investors are satisfied with the earnings report, they buy the stock, and its price goes up.

If investors don’t like what the company reported, they sell its stock, and the price goes down.

That logic may then be broken down further into several criteria.

Actual Performance Against Previous Quarters

First, investors compare the financial performance of the reported quarter to the previous quarters. That comparison yields its own set of investor sentiment typically as follows:

If sales, revenues, and earnings of the last quarter have grown against previous quarters, that’s a positive dynamic. The stock price is likely to go up in this case.

If these main financial indicators in the last three months have decreased, that means a company may have problems. In this scenario, the stock price will likely go down.

Future Company Projections

Second, investors check what the company expects to see in the coming quarters. For example, a corporation may have reported weak performance in the last three months, but if it provides solid reasons why it expects to see better performance in the coming months, that will be a positive indication.

If the company provides optimistic forecasts for the coming quarters, its stock price is likely to go up.

If the company provides a pessimistic outlook, its stock price may go down.

How to Trade on Earnings Reports

The Olymp Trade platform will inform you which companies are planning to release their reports and when in the Instagram stories, platform’s stories, Telegram posts, emails, and pushes,. You will also have Olymp Trade expert forecasts on each stock in these. Essentially, they will tell you why they believe a company’s stock price will go up or down upon the release of its report.

Therefore, you can easily make trading decisions based on the above information from Olymp Trade on the stocks you trade on.

On the Olymp Trade platform, you can trade on stocks in the Forex, Fixed Time, and Stocks trading modes.

When Will Companies Release Their Earnings Reports?

Below is the schedule of the earnings reports planned to be released. In the table, BMO means that the report will be out before the market opens, AMO means the release will take place after the market opens, and AMC means the release will happen after the market closes.