Stock Market Earnings Reports EXPLAINED
The version of the last three months, so on the day of the company’s earnings they will usually issue a press release and then reveal the 10-q format and then they will receive an earnings call about twenty or thirty minutes later. q Analysts and the general public are allowed to ask a few questions about the Ten Questions and then with the general public. For 2019 Q3 I am here to ask you questions about ten q q for those of you who have never seen 10 Q or 10k before pulling the Apple 10 Q. Keep in mind that these are public documents, you can do a Google Apple 10 Q at any time to view them, and it should pop up in the search results, so this is a quick crash and I will not go deep into 10 Q, but the main thing is to find out about our financial statements. What you need to see Thereby you can find things like balance sheet income statement and cash flow statement. It will then give you a better idea of how to finance a company.
They may not even know exactly where you are in these 10 QIs because there are reports of dividends that you may fi, but they will talk about their dividend report and how to do it, and finally look at some of the guidelines or so-called company outlook statements, Management will talk about what they see about the company’s vision and horizons, and we have a good understanding of all the information provided by the company’s earnings report. Put all of these together and identify the most valuable parts, so I’m focusing more on these five points because as someone with a full – time job I do not have time to examine the full 10 Q right now. As a hard-working investor, I can fully understand that you understand the whole point and I have nothing against it. So here are the top five things I would like to look at first: EPS or Earnings Per second p / e Rate or Price Earnings Rate I would like to compare with the EPS estimated by the company’s EPS analysts.
Then I would also like to look at the parts of the future guidance statement. Maybe earnings will bring something in the call. 10 q and it may be important to understand the future outlook of the company. One quick dismissal before we get into this is to remember not to send any of this into a vacuum OK I’m not going to go into a company right away where there is not a perfect EPS or any dangerous EPS that need to liquidate my stock quickly. All of this should be taken as a trend. If we see the EPS trend, it could be dangerous, and if we see the EPS starting, it could be the other way around. Rise is a good thing, it means that you know that the company can be more profitable EPS is basically the profitability of a company on a one-share basis. We get this from the company’s net income and profit. Amazon’s net worth recently reached $ 2 billion, and they now have about half a billion shares left, so we can get a $ 4 EPS and you ‘ll be surprised if you get this $ 4. Amazon This drop is lower than last year. Like I said before you look at the trend you have to be realistic at the end of one day The world is probably getting another loan amount from Amazon and maybe things will slow down a bit but you have to be realistic too. Every year a company can continue to surpass its earnings and you know that the time will come when a company will become very large.
Must go to some kind of consolidation phase, so with EPS we can actually see the company’s profitability trend but at the same time, we need to understand that this company is in their growth phase or you know where they are going. There are a lot of different factors going back into a development phase and I mean you can not use this in a vacuum but at the end of the day, EPS gives you a good idea of a company’s current trend. Profitability Next we have the p / e ratio or the earnings ratio. This takes EPS one step further and it is linked to the actual share price of the company and I have the real value of the company in quoting to actually get it. Calculate the bought the share price and divided it by eps Amazon share price is currently around 1800 and in the last 12 months the EPS has been around 20 2.5
So when we calculate this we have an ap / e ratio of around 80 which means I’m sorry to have to pay $ 1 as an investor to get a dollar of earnings from this company so you’re crazy to see a number like 80 Might think. That means I look at it and wow this company is highly valued but like everything we have to look at the context first. There are a lot of uncertainties about the new development with the technology retail company and the technology and the new technology can be released and if all this is successful then huge profits can be made. The exaggeration of shareholders who pay people premiums to see this company at a rate of 80 means that it has been surpassed, but that it has surpassed it in the eyes of investors if it wants to trade at 1,800 if it is integrated into something like Amazon at the moment This means that 1,800 investors will be satisfied with the purchase.
Let’s look at the other side. So we can never find a company with an ap / e ratio of 1. It is usually highly valued and we usually find companies that underestimate it in the range of 10 to 15. So if we find a company that has underestimated and has one of these low p / e ratios and we know that the company is doing better. Some companies trade at ten to fifteen on an average basis, but we have to buy and buy it all at once. Bank shares, for example, typically trade at a ten to fifteen PE ratio, so why not? Many of the uncertainties in the banking industry are that they are very transparent with their operations and there are not many big changes that can happen in that industry which will lead to huge valuation growth or cover this down. Then keep in mind that with a high p / e ratio you may want to consider selling if the company has too much and you should consider buying if you have a low p / e ratio. If you know something that others may not remember I talked about a previous earnings blow before the company’s earnings estimate arrives.
Will give us. The estimate for Amazon was eight points, and one way you might think of this is that if Amazon trades eighteen hundred, it means that analysts are looking for a point eight eight-point EPS to give Amazon that value of eighteen hundred. We already know that Amazon has missed this estimate. They reported a four- to three-point EPS, and what this means is that Amazon basically has ocular activation. This could happen in the eyes of analysts and shareholders and their earnings would have been lost as shareholders would have had to sell their shares to reassess Amazon’s true value, so if Amazon reports 4.23 Maybe the value of the shares is only 1700 in the eyes of the investor but we have to go back and keep in mind that we can not isolate any of this because the company missed their earnings. Remember it is the value of the shareholder and there are other factors. Amazon can give a statement on why they missed their EPS, or give them a future guide on new things to look at on the horizon. Analysts are currently a measure of how a company is valued but remember that analysts do not have all the information at the end of the day the company knows what they are doing and ultimately may need to dig deeper into the valuable information that they are putting forward on the outlook and outlook.
Many are things that cannot be valued on financial statements, for example, a company like uber w may try and slip the most horrible financial statements in their research on automotive and automotive sharing and what they are trying to do here is to make their shareholders who cannot be valued To present value. A financial statement and so you want to get these four guidelines but you can say some things about a company that can’t offer dollar value and there is also an earnings call – top management comes from there summarizing their 10-q and then from analysts and big companies Ask questions from This is not usually a problem, but sometimes management can show a lack of confidence and the way they talk. Or they may slip. There, management will reveal things they did not expect to talk about or reveal about things that were not in the ten queues, which could drastically change the perspective of the company’s shareholders. Well in each of these cases something comes up in the Ford guide or earnings call which can be very important for your understanding of the company’s stock value and you should have a good understanding of how to assess the core earnings report of the company.
How To Profit From Stock Market Earnings Reports
Let’s look at an easy way to actually make a profit from earnings reports. We look at all the key factors in terms of earnings. Then let’s see how we can profit from them in a very safe way. This is the best way to speed up the trade and contribute to the market and hit these bells For more stock market Let’s start with a simple explanation of the earnings report.
Investors like to use these numbers to see how well a company is performing in the short term. You will see applications like Earnings Report for the quarter. This means that until March 2018, three months from January to February and March, if the company releases a good number of their sales and profits are at a good level, the shares will rise on average. This means that we can benefit from buying a good stock that has issued a good report and these reports will come out after the market closes, so you can not get into the spike unless you buy before buying a report. That would be good news, people who analyze stocks have an idea of what numbers will come in, these estimates are based on what the company thinks it will bring in next quarter and what analysts think, how do we hit or miss when talking? If a company comes in at a low number like low profit this is a bad sign and if the stock price is generally low then let’s take a look at the top four numbers we are looking at now about earnings when analysts are hitting the expected numbers The most important number starts with earnings for those three months The money earned by the company in is an example of making money without counting any money.
For example, if Apple sold one iPhone for $ 1,000 in the last quarter, their revenue would be $ 1,000, so that a quarter of the revenue would be pure money and a company would not be able to make a profit without revenue before other numbers, such as the cost of the iPhone’s arrival, a company using Apple’s actual earnings report This is a very important number to see if it works well. In July, they expected analysts to pay $ 53 billion for June and July, for example, $ 53 billion out of 52 points. So you will want to see a number that they can beat this number and beat the estimates as a good sign. It would be amazing to get a good money 10% hit. Next to us, EPS or earnings per share is the profit a company makes if Apple sells one iPhone for $ 1,000 in the last quarter and spends $ 300 and $ 200 on that phone. They made $ 500 a quarter in earnings for labor and advertising, and the money they had to keep was usually a very important number to run a business, so high profits meant the company was growing fast. the company earns billions but if they have to spend more than that they can make a good income but the business can fail and we divide the overall profit of the company as we look at the earnings per share.
How about $ 500 If Apple had 500 shares, most of the shares they own would be $ 5 per share in real life, divided by 10 out of 10. Apple has more than 5 billion shares and billions in profits. We see an EPS of $ 2 and 34 cents, it doesn’t look like much profit, but it’s 1 point 2 point 3 4 times 5 billion shares 5 billion 7 dollars 7 months 7 billion profit for 3 months this figure is still nothing Doesn’t mean it’s only $ 2 for 18 cents a share compared to what analysts expected, and Apple beat that figure by 7%. These are the two most important signs. Then we have something different for each stock investor Concerned about Apple’s largest moneylender This is an iPhone sale, so this is a number unique to Apple for other companies such as Active Blizzard. It could be selling video games or selling computer chips for Intel. A number of new cars are usually produced for Tesla. It’s Apple’s third most important product, the iPhone sales. That’s because a large portion of the company’s revenue they sold 40 1.3 million in the last quarter, but analysts expected 41.8 The good news is that they have missed out on this number of iPhones that have not sold more iPhones than last year, raising the average iPhone sales price to $ 724 due to the new iPhone 10 prices. Although investors are reluctant to drop iPhone sales, the least important thing they can do to find this good news at a profit is guidance.
This is what they think the company will produce for Apple next quarter. They expect between $ 60 billion and $ 62 billion in the next quarter. Being as high as investors can be optimistic can sometimes beat a company all the numbers but with fewer guidance investors can sell shares. This means that all four numbers in the earnings report are important and that even one omission is enough reason for many to sell now.
In two days, it was 9%, up 10%, and since the report, they have risen by about 5%. The average investor may not be able to get it before that time because the report comes out hours later and the computer automatically buys on a good record, but we could have bought up to 4% from here on out because earnings reports are the safest way to trade stocks. It’s as easy to read those important numbers as it is to get a good response after seeing how the market has reacted.
I would like to wait at least half a day to see how the market reacts, maybe a little detail will drop the stock because it could happen later in the day. Even if the stock goes up after a few hours, let’s look at the stock of apples throughout the year. Recent Spike in All Positive Reports except iPhone Sales Previously with a 12% spike in May I would scan EPS $ 2 and more important numbers above 73 cents if I play this record in less than 10 days. $ 2, 67 cents, iPhone sales 51 points, 1 point 60, 8 billion 2. iPhone sales were 52 points and 2 million vs. 52 million and 4.4 million, respectively. 4 yrs. In the next quarter, they expected 51 to 5 billion from 53 billion to 5 billion to 51.6
If the market hits 5 percent after hours of a blow from analysts, I look forward to responding. An earlier report had specified that it should be purchased. Earlier they had also beaten the numbers but the iPhone sales were seventy-seven million and 80 million and the expected 80 million. Due to market panic, it fell by 7% and rose by 8% as soon as we saw it in the short term. It is still volatile but stocks generally rise over time once a good number is reported. Another example of good and bad earnings is that Walmart is up 10% in a single day, thanks to their latest earnings record EPS of $ 29 cents and $ 22 billion revenue per dollar, the third-highest number compared to 2.4 in-store sales. Increased by 4.5 percent
As a percentage, they expect big sales, and another significant number of them have seen a 40% increase in online sales, with guidance for the whole year ranging from $ 4 and ninety cents to five cents, eps four cents and seventy-five cents previously expected. The dollar was a blow to every number and above that Walmart was already at a high level. Even a blue-chip company in stock market prices is giving this high growth and leading to future growth. This means that the current price of the stock can take into account that it could happen over the next two months, so even a good earnings record can drop a stock if a company does not beat every number. Nvidia reported earnings that fell 5 hours later to $ 1 and 76 cents an EPS, beating the dollar and 66 cents to see what problem we started with.
66 cents better than expected, beating 3.1 million expectations by 3.1 million Billion, this was a huge increase of 40 percent year on year. The third important figure was the sale of chips in gaming computers and data centers. They have all risen and the future prospects were the fourth most important number they expected. Nine billion to two million less than analysts. Due to the fact that crypto mining cards are not sold and Bitcoin is of low value, people have recently been hoping that Nvidia will actually make a profit from this crypto craze. When announcing the news of the sale of low crypto mines, Nvidia shares are priced and it will be considered a bad sign even if investors beat all the numbers. This is not to say that it will continue to fall, as it may still be a good drop to buy as they hit all the numbers and look at another stock that fell 20% after earnings. It’s a company that really needs subscribers to boost revenue, and when it announced six hundred and seventy thousand American subscribers against one million, it sold out to three million prospective investors at this pace. This example shows that low-value volatile growth segments are prone to ups and downs.
Bad earnings mean that a slow and steady company like Coca-Cola will drop 4% on bad news and Amazon and Netflix will drop 10% or more in a day. This shows that it is extremely risky to buy a company before the earnings report we saw on Netflix. If you invest $ 100,000, Facebook will drop by 20% in less than a week. You will drop $ 20,000 a day. Or the less risky thing to do is to increase earnings. When all earnings are good news, AMD’s 90% increase from $ 10 to $ 19 on the first earnings day after a big earnings record, and even after buying it, you’re about 80% buying it. This is why buying after earnings also you make good money if you ride a good assumption around a company you know. Make sure all four of those numbers look good and hold the stock for at least the next two to four weeks then you will have some quick gains that will hit the market. Overall I use to track their earnings calendar to calm earnings dates and their upcoming earnings calendar will tell you about all future earnings futures. It’s as simple as looking at the current day of the week. See if any interesting companies report.
If a company reports within a few hours before a market opens or closes a few hours before, it is better that you only wait a few hours to buy and then wait all night in the morning. Here we have Nvidia and Walmart reporting the same day and it shows you the stock movement and this is the safest type of investment I make every week in my stock market group on Monks market movements.
My real stock portfolio is over $ 240,000, you guys who have been updated live by email. If you were in my group two weeks ago, you could see me buying a canopy growth of twenty-two thousand dollars and giving it more than 25 percent in one day and giving me this five thousand six hundred profit. I want to make sure that everyone gets into a coupon with a discount of 50% on PayPal, 80%, 9% on Adobe, 7% on AMD, 37% on Facebook, 6% on Facebook, and 50% off when looking at the description. Hit that bell for more stock market strategies. I make these videos daily to keep you informed and to do something similar if you learned new information today. The path of the good report monk.