Earnings
season
is
a
term
you’ll
hear
or
read
with
some
frequency
during
the
year.
The
market
always
approaches
the
earnings
season
with
caution
because
of
the
uncertainty
and
the
market
can’t
stand
uncertainty.
Companies
that
hit
or,
better
yet,
exceed
their
number
may
see
their
stock
rise.
The
market
may
hammer
companies
that
fail
to
meet
their
number.
Industry
Leaders
For
industry
leaders,
the
numbers
come
out
in
the
form
of
estimates
ahead
of
the
actual
report.
If
an
industry
leader
stumbles
on
their
numbers,
you
might
see
the
whole
sector
suffer.
The
earnings
season
occurs
when
a
large
number
of
companies
report
their
quarterly
profits
or
losses
to
the
public.
Market
analysts
follow
major
companies
and
estimate
what
the
earnings
number,
reported
as
earnings
per
share
or
EPS,
will
be.
Some
of
the
analysts
have
financial
relationships
with
the
companies
they
follow.
There
have
been
charges
that
earnings
estimates
where
manipulated
in
the
company’s
favor.
Many
companies
also
provide
“earnings
guidance,”
which
is
management’s
estimate
of
what
the
company
will
do
in
the
future.
There
are
rules
and
regulations
about
what
they
can
say,
but
plenty
of
wiggle
room
that
some
in
the
industry
say
is
too
much
and
boarders
on
manipulation.
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