Earnings Season on Wall Street: 30 Days of Hell

An article in Bloomberg last month discusses the potential repercussions of changing the corporate earnings reporting requirement from four times a year to two (as contemplated in one of President Trump’s August tweets). Although supporters of the president’s idea say moving to a biannual reporting requirement would free up U.S. CEOs to focus more on the big picture and give flexibility to small companies, critics say such a switch, “might reduce transparency for the investing… Read More

Higher Earnings are Driving Stock Gains

The biggest U.S. companies have started a new growth streak and more good  news is expected in the coming quarters, says an article in last week’s Wall Street Journal. Citing FactSet data the article states “fourth-quarter earnings are expected to log an increase of 4.6% from the same period a year ago, the article states that this would mark the second consecutive quarter of year-over-year growth. “ “As for the overall market,” says WSJ, “corporate… Read More

NYU Prof, Damodaran, on Price vs. Value: Reading Earnings Reports

NYU finance professor Aswath Damodaran writes in the blog Musings on Markets about “the pricing and value game and how they play out, especially around earnings season.” Contrasting the two concepts, Damodaran says that value “comes from a company’s fundamentals, i.e., its capacity to generate and grow cash flows,” while pricing “is a market process” that results from supply and demand and is “a function of market mood/sentiment and incremental information about the company.” Accordingly,… Read More