Earnings Announcements: The Dramatic Times Ahead

Earnings season is often seen as a dramatic time for the investors. The stock price is suddenly flying up and down. Investors are biting their nails and do not know what lies ahead, what the management would say, and which move would affect the stock. Historical earnings dates are marked on calendars, and analysts have their thinking cap on them. Typically, if the earnings of a company exceed expectations, it sends the price flying high. But if there is a miss or the company performs below the expectation, it becomes all jittery. Sometimes the management tends to manipulate earnings too. In such a histrionic time, what must an investor do?

Let’s solve the query with Google example
Let us use Google as an example to understand certain things. The company trades in the NASDAQ stock market under Alphabet Inc Class A and ticker symbol GOOGL. This is a large-cap company with a market capitalization of 1.64T USD. Google is well run and has an excellent reputation in the market. Its average share price in 2021 so far has remained $1,351.65 — $2,455.51. The company is credible enough to remain open for communication with analysts and investors.

The last quarterly Google Earnings Date was in March, when the company formally announces its first-quarter financial results. Investors often make use of services like stock charting to have a better understanding of dramatic fall and rise in share price. When something drastic happens to such companies, the investors are caught off-guard because such stocks have high share value.

Google Earnings Date holds much importance for traders because the company is widely held and comes with a lot of quality. Investors mark their calendars for their historical earnings dates. The management remains highly transparent and accountable to all stakeholders, and not just investors. During the earnings season, Google management takes a formal and professional stance to address all parties’ concerns. They do not try to hide any information from analysts and investors.

When to expect Google Earnings Date?
Google releases its historical earnings dates and revenues after the ring of the bell on the day indicated. Market reactions and price movement come the very next day as markets open. It is the day following Google Earnings Date when most of the share price volume is experienced.

Technical analysis of the historical earnings dates of Google gives a little insight into what to expect. Different traders have their trading approach, which works for them. Over time, investors pick their tricks of the trade. Some investors have a rule of not holding a stock into the earnings announcement. It is a kind of discipline that prevents incurring losses when companies announce earnings. This well-known trick is used extensively by many investors to save a lot of money many times. Often the investors who are also trading in the short term can follow the rule. Documenting historical earnings dates is an excellent approach to have on the watch list. It keeps the investors wary of earnings.

Monitor quarterly announcements
All investors must monitor the earnings announcement. It is the basic fundamental which comes into the picture while trading earnings. Google earnings date is trackable through a series of web applications that present a chart of its historical earnings dates with required data under a commonplace.

Do companies manipulate earnings?
Companies can sometimes lower the forecast around 15 days before the earnings announcement to beat the consensus prediction. This can send the share value flying high. It is categorized as a kind of earnings manipulation. Many economists, over time, have reported such manipulations.