The Earnings Calendar highlights where public companies present their Trading Update or Interim Management Statement to the market, an important time in an investor’s calendar as share prices often fluctuate strongly.
These updates or statements provide an update to the market as to the performance of the business against expectations – it can show promising opportunities, concerns or headwinds the business may face. In many ways it’s similar to a report card – but the company is grading itself. The bottom-line profit figures are usually reserved for the full-year results or interim (half year), which are also detailed within Earnings Calendars.
Whilst not mandatory in the UK (unlike the US), the global nature of many companies listed on the London Stock Exchanges means that Earnings Season & associated updates are very much present in the UK too.
Checking in on progress, look out for share price volatility
These updates are usually presented to the market during an Earnings Call prior to the start of the Stock Exchange opening for the day. Management of a company will brief analysts and related parties on the contents of the Trading Update or Interim Management Statement – then the market opens and you can see how the update is interpreted (good or bad). This is why share prices do tend to fluctuate in particular on these days.
The release of the these updates take place during the Earnings Season which tends to be in the month after the closing of a financial quarter. So these seasons are prominent in January (December quarter close), April (March close), July (June close) and October (September close).
As a minimum you should note the Earnings Report dates (or Earnings Calendar Calendar) for shares you have invested in. But you should also note the dates for shares that you are considering buying. These updates and statements are hugely important in ensuring your investment is staying on track or can perhaps present a solid buying opportunity – markets do tend to overreact to bad news.