Glamsplainin' the Earnings Report
An earnings report is to a publicly traded company what a look book is to a fashion brand...or what Kanye is to misunderstood rap. It’s a representation of the current financial story of the company and is released at the end of every quarter (season).
The SEC (Securities and Exchange Commission) , is the entity runnin’ things like Vogue and Anna Wintour...but for Wall Street. They require public companies to file a 10-Q, which contains financial info such as the company’s balance sheet, income statement, cash flow...basically 100 pages of a ton of math strategically placed in charts and graphs...because that’s always cute. It also includes management’s take on the condition of the company, any market risks the company might face and information about any lawsuits. Companies will send out a press release, a cheat sheet for the 10-Q, which we call...wait for it...the earnings report!
At the end of every season, there is always buzz about the earnings report. The report includes a brief snippet from management and key financial info like revenue, net income, cash flow, earnings per share and EBITA (Earnings before interest, taxes and amortization) . EBITA (Earnings before interest, taxes and amortization).