Lesson 2 of 4 · 5 min read
Quarterly figures (earnings)
Four times a year a company opens its books. What do you look at then?
Revenue & profit (EPS)
The two headline figures: revenue and earnings per share (EPS). Analysts have expectations; a 'beat' is above them, a 'miss' is below.
Guidance is often more important
What a company says about the future (guidance) often moves the price more than the figure itself. Strong figures + weak guidance = often a decline.
Look beyond a single quarter
One quarter is a snapshot. Trends over multiple quarters (is revenue growing? are margins staying healthy?) say much more than a single beat or miss.
Remember this
- Revenue and earnings per share (EPS) are the headline figures; beat or miss versus expectation.
- Guidance (a company's own outlook) often moves the price more than the figure itself.
- Strong figures + weak guidance often lead to a decline.
- Look at trends over multiple quarters, not a single snapshot.
There is a quiz for this lesson
1 questions that check whether it stuck. They live in the app, because a quiz nobody grades teaches nothing.
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