OpenMarkets Weekly: Earnings Season

At a Glance

  • Earnings season means a flood of information. This week, Jack Bouroudjian breaks it down to the three things you need to know.

“Earnings season” is a term we hear every quarter. Over the course of a few weeks, publicly traded companies announce their quarterly financial results and the market reacts to them. But what should market watchers and investors look for in earnings? In the flurry of reports, announcements, calls and market swings, it’s easy to lose track of the numbers that really matter. How do market participants find value during the, at times, hectic earnings season?

In our inaugural episode of OpenMarkets Weekly, Jack Bouroudjian tackles this question, and distills the answer down to three things:

1.The present and future earnings projections for a market

2.Historic price/earnings ratios

3.The earnings call and projections

These represent the basic calculations, historical numbers and future guidance those following earnings should know, says Jack. Focus on these each quarter, and the flood of information that is earnings season becomes easier to digest.

“Earnings season doesn’t have to be so confusing,” he says, adding that finding value “is subject to good homework, understanding what to look for and informed interpretation.”

Watch the full episode above.

OpenMarkets is an online magazine and blog focused on global markets and economic trends. It combines feature articles, news briefs and videos with contributions from leaders in business, finance, economics and politics in an interactive forum designed to foster conversation around the issues and ideas shaping our industry.

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