No matter what wonders the marketing department makes and what plans top managers share, it’s the quarterly earnings reports that show how good things are for the company. That’s what earnings season is for. That is why the quarterly financial results are used to evaluate conditions for both long-term investing and short-term trading.
A new earnings season starts in April 2021. Our article will help you to learn what is earnings season, when it starts, how long it lasts, and to get the most out of it.
When Is the Earnings Season of 2021?
Companies release their earnings reports after a financial quarter ends. We can say that the earnings season lasts about two months. The peak of releases falls on January, April, July, and October. However, some companies can report on their quarterly financial results at other times too.
Opportunities for Traders
Each earnings season allows traders to take advantage of the changes in markets. The release of performance reports, depending on the results, can push price quotes up or down. This creates a window of opportunity when volatility is high.
This period lasts for 1-2 days after the report’s publication and offers a great opportunity for traders to make more profit on the price changes before the market balances out again.
Earnings Calendar of Financial Q2
This summary table provides information about the reporting date and time of the second quarter. Pay attention to the BMO and AMC designations — they will show you exactly when to open trades. BMO (Before Market Open) means that the report will be released before the US trading session opens – that is, before 13:30 UTC. In this case, the market will react to the news on the same day.
AMC (After Market Close) means that the report will be released after the US trading session closes (after 20:00 UTC), which means that the traders’ reaction will follow only the next day. On Olymp Trade, you can make trades on shares of 35 companies in the Forex mode and 17 companies in the FTT mode.
For your convenience, we have prepared the Earnings Season calendar for April-July 2021. Please note that there are only companies which stocks you can trade on Olymp Trade:
|Procter & Gamble||20.04||BMO|
|Johnson & Johnson||20.04||BMO|
Companies can change the date and time when they release a report. That is why we recommend that you check the publication time yourself using the service provided by yahoo.finance. You can also rely on the information you’ll receive from Olymp Trade through several channels.
How Will Olymp Trade Make Reports on Earnings Season?
Make sure you check your inbox: each Friday, we will email you the quarterly reports scheduled for the coming week – so you can prepare in advance for trading on particular stocks. The platform and the mobile app will also be sending you push notifications one day before the earnings report release. The current earnings season is a perfect reason to turn on notifications on your smartphone.
Don’t miss our stories. You will see the latest pieces of expert advice whenever you log in to the platform, but you’ll also be able to access them all through the “More” menu. Besides, we will be covering the events in our official accounts on Facebook and Instagram. Make sure you follow them!
Important Report Indicators
As you have already understood, a quarterly earnings report is an important document. But what indicators should a trader focus on first of all?
- Earning per share (EPS) is a measure of earnings per 1 share. It is considered to be the key indicator of the company’s quarterly performance. As a rule, major financial companies publish consensus forecasts on this indicator. If the real data is higher, the demand for this stock sharply rises, and traders get more chances to profit from this short-term but powerful trend.
- Revenue is the revenue earned by a company from selling goods or services. The revenue shows that a company can generate cash flow. Companies also release consensus forecasts on this indicator.
- Forecasts are a piece of very important information for investors. The company’s ambitious plans to expand into new regions or reach new market segments can generate interest in its stocks.
Even though there are many more important economic indicators, you should be aware of the fundamental trading concept during the reporting season: the market expectations are always expressed in consensus forecasts. If the results are higher, the company stock has a better chance of rising. If they are below expectations, the stock price may fall.
Do you want to know more about trading stocks and fundamental indicators of the company? Read about it on our blog.
How to Trade on Olymp Trade during Earnings Season?
The most efficient way of trading during earnings season would be by using recommendations that we provide. Look up Earnings Calendar, wait until the reports start rolling out, and then enter the trade with the asset in question. You’ll generally have a day to ride the wave.
But how can you guess the trend direction? Don’t worry, we’ve got you covered here as well. We’ll analyze the report for you and give you a signal about the direction in our stories. That’s why you should turn on our notifications before the season starts in earnest, as those are vital to your success.
A successful trader should master more than just technical analysis. Acting correctly during the earnings season is an important skill you can improve on the Olymp Trade platform. Good luck to you!