Publicly traded companies, listed on organized exchanges, are generally required to announce their financial results on a quarterly basis and at the end of their fiscal year. Accounting guidelines vary from one jurisdiction to another depending on the country’s regulatory standards, but the most important quarterly disclosures include the income statement, balance sheet, and statement of cash flows.
Investors and traders alike tend to peruse these filings for clues about a company’s current health, growth, and profitability, but frequently focus on two key metrics: revenue and earnings per share (EPS), with the former showing the total amount of money brought in by business operations and the latter indicating how much income is available to each outstanding common stock.
For timely insight on corporate results, DailyFX has recently launched its global earnings calendar, an ideal tool for traders and investors looking for information on the most important upcoming quarterly reports from companies around the world, including, but not limited to, those domiciled in North America, Europe, and Asia.
The calendar, designed with the user in mind for a positive and smooth experience, allows filtering earnings reports by company name, date, region and/or importance. It also contains information on analysts’ expectations for both revenue and EPS, along with prior period results for comparison and historical reference. Market capitalization details are also shown for a more complete view of the reporting company (see image below)
When a publicly traded company announces quarterly figures, its share price will often move wildly, at times gapping up or down significantly. Based on this knowledge, the DailyFX earnings calendar can be used to determine which stocks could be about to experience higher-than-usual volatility and present interesting trading setups.
Fundamental traders who believe that sentiment is too pessimistic or optimistic about a company can use information about earnings expectations to make directional bets. For example, if a trader believes that a firm’s quarterly results will top consensus estimates by a wide margin, a bullish position might make sense on the assumption that the market will reward outperformance by bidding the company’s stock higher.
There are countless ways to trade corporate earnings, from simple approaches to very complex ones using options, but the first step to preparing a successful strategy is to be able to easily and accurately track upcoming quarterly reports, along with market expectations. Recognizing this need, DailyFX has developed its free and fully customizable global earnings calendar, updated automatically and in near real-time, for anyone interested in equity trading and gaining an edge in their strategies.
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