Do Earnings Matter Anymore? Microsoft and Intel Investors Say No

Every three months, publicly traded companies report quarterly results. Analysts do their best to forecast a company's revenue and earnings per share, often referred to as the headline numbers. Some investors try to trade around earnings results by placing short-term bets on how they think the stock will react, a dangerous, but sometimes lucrative game.

Yes, there is lots of valuable information to be gleaned in company earnings calls. CEOs frequently offer predictions, comments on the competitive landscape, and much more material information investors benefit from knowing. Still, folks should avoid solely focusing on whether a company beat analysts' revenue and EPS expectations and the stock market's immediate reactions to earnings reports. Why?

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Source Fool.com