Ask a Fool: Should Long-Term Investors Pay Attention to Quarterly Earnings Reports?
It's definitely worth paying attention to the earnings reports of a company whose stock you own, even if you aren't planning to sell for decades. However, be sure you're paying attention for the right reasons.
It's important to read updates on the business to ensure that your initial reasons for buying still apply. As an example, if you buy shares of a company because of its growing subscription revenue and growth starts to rapidly decline, it could be time to reevaluate the investment. A quarterly report can show if a company's profit margins are suffering, if its market share might be declining, or if it's making a major strategic change.
It also can be a great idea to listen to a company's earnings conference call (or read a transcript of it), as this can give you tremendous insight into where it is succeeding and where it could be struggling.
Source Fool.com
