The earnings calendar is decidedly one of the most searched documents during earnings season.
It gives you both long-term and short-term cues for the market.
It helps you take a call on the markets.
Earnings calendar is like a ready reckoner for the top market cues at any point of time.
You get a perspective on the business fundamentals and technical triggers in one go.
For the uninitiated, the earnings calendar is that one cue that can pretty much seal their profit margins.
However, for many new investors, terms like earnings and earnings calendar can be rather intimidating.
In very simple terms, earnings refer to the quarterly performance results that all public listed companies announce.
It also gives time for the management speak post earnings and even earnings call.
But then are you wondering, it is the earnings that matter, why the earnings calendar?
Well, I am sure you know about the economic calendar.
It records data of all the important economic events.
Have you wondered why it is as important as the economic data that it documents?
The reason is quite simple.
It prepares the market for a variety of the events that are going to unfold.
Many investors may tweak their investments according.
Well, the earnings calendar plays a similar role in the markets.
The economic calendar offers broad market cues, but earnings calendar makes the cues lot more stock specific.
It is about how well you can prepare for every individual stock in your portfolio.
In fact, the earnings calendar offers one of the fundamentally most important cues.
They go on to impact individual stocks and market mood too.
Who Makes the Earnings Calendar?
The primary question is who makes the earnings calendar.
Most times corporates declare a specific timeline for their earnings.
They even mention a set time for declaring the results and conducting earnings call.
All this information is generally available on stock exchanges.
One way of getting the information is by browsing the individual company pages on stock exchanges.
By doing this, you can get information about individual companies.
There is also another way of getting the same information.
Most brokerages have analysts who research a variety of sectors.
Every brokerage covers a certain number of sectors and specific stocks.
Now the analysts often collate all the data together and put it out as one complete calendar.
You often see investment commentary sites like Bloomberg or CNBC also providing you with this collated data.
They have the in-house research division that collects all the data and lists them on one site.
The idea is to continue with the investor convenience objective that the earnings calendar is all about.
This collating the information from individual companies and jotting all together is a step in that direction.
It creates a one-stop shop for all the information and empowers investors a tad more.
Alerts Analysts About Urgency of Earnings Estimates
The moment a company declares its results, we tend to compare with the earnings estimates.
Analysts dish out instant estimates, put out tentative outlook and then compare with the actual numbers.
But have you wondered how they can calculate these numbers so fast?
It is not that easy to compute such complicated numbers at such a short notice.
You have to account for several scenarios, take into account different developments and then compile them.
Moreover, you will have to take the economic situation in consideration too.
Now with all these factors, it is essential to have time in your hand.
This is where the earnings calendar comes handy.
It keeps the market and the analysts on their toes always.
You can get information about the key earnings dates well in advance.
Analysts can then use this information to their advantage.
They can use the additional information to create a meaningful database of information that can help their analysis.
Additionally, this information helps them to tweak the information and estimates too.
For example, there is a distinct increase in retail sales during the holiday season.
So when analysts are computing estimates for January quarter numbers, they have to consider it.
But the April sales may not be comparable with November-December sales.
But the analysts are able to factor in all these differences only with the help of earnings calendar.
They can account for the changes in customer trends with the help of this calendar.
This is their most important vehicle to stay ahead of the curve and the trend.
Often the earnings estimate are calculated on the basis of when the earnings will be announced.
So the earnings calendar sets the tempo, tone and tenor of market movement.
Investor Convenience Is Primary
But more than analysts, it is the investor convenience that the earnings calendar focuses on.
Remember that the earnings calendar helps organize a whole gamut of data.
The earnings season is normally very hectic.
You have a truckload of companies announcing their numbers.
Now some market heavyweight companies impact the sectoral movement too.
Often their earnings impact how the rest of the sector reacts.
Moreover, when you have just one investor keeping track of a large number of data points, it can be overwhelming.
But with the earnings calendar, it is streamlined to a large extent.
Earnings of various companies are neatly stacked on a monthly, weekly and daily format
Most earnings calendars are very meticulous, so they also include a specific time for earnings too.
That means the investor is not just prepared for specific company earnings on a given day but also the time.
Often the earnings are arranged in an alphabetical fashion.
They may sometimes be arranged as per date.
So as a result, however, the earnings calendar may be organized, there is hardly any way to miss any result.
That means investors do not have to sweat about missing any information.
The earnings calendar is all out to help you with key details.
It keeps investors on their toes with all relevant information.
So if on any given day, you want to know what stocks to bet on, the earnings calendar provides necessary cues.
For example, if the street is estimating better than expected results by Apple, it sure means tech sector will be in focus.
Apple traditionally has a record of delivering better than expected results.
So it will make sense to bet on Apple or tech sector in the morning.
The prices will decidedly shoot up post earnings announcement.
Timing Entry and Exit in the Market
Normally an earnings calendar has some crucial data inputs about the market.
From the date of results declaration to the precise time when results will be announced, it provides crucial triggers for the market.
So on any given trading day, it provides investors the most important stock cues.
For example, if results are being announced today, I will avoid taking fresh positions right today morning.
This is if the estimates suggest that the results may not meet expectation.
Moreover, there is often volatility in the specific counter or sector ahead of results.
So the earnings calendar offers investors key inputs about when to enter and exit the markets.
Timing the markets is one of the trickiest aspects of trading.
The markets are uncertain in nature.
You can never predict the market entirely.
What most investors rely on is the overall trend and direction of trade.
The earnings calendar is that unique key that helps investors get an edge.
It often gives you a hint of cue that you must follow.
Let me give you one real-life example.
One morning soon after trading began I noticed that a small cap counter was racing forward.
I checked, but there were no real cues that can justify.
Very intrigued, I kept looking for a trigger that may drive up prices.
In that search, I looked into the earnings calendar too.
It had announced results, but there was nothing extraordinary in the numbers either.
That is when I noticed that the earnings calendar also listed an earnings call same day evening.
The management was very positive about the future outlook.
The stock jumped as the company expected sales to double next year.
There you see how the earnings calendar helped me navigating my trade.
Earnings Calendar Influence Stock Picks
This is particularly an important trigger when it comes to stock picks.
An earnings calendar is rather useful in this context.
Let us say I have a specific number of bluechips in my portfolio.
But I am now keen on incorporating a few midcaps too.
The question is how I look for value buys in the midcap segment.
The earnings calendar offers important clues in this aspect.
One simple approach is analyzing the earnings and looking for the best bets.
Basically, the fundamentally strong companies will deliver strong results.
They may exceed estimates or may be in line with the analysts.
Most importantly, it is important to analyze the management view.
The earnings call timings are also listed in this category.
The management often gives out key projections about their future in these earnings calls.
Many companies undertake conference calls with analysts too.
Even that is listed on the earnings calendar.
That also offers key stock cues for the investors.
Investors who are tracking a specific company for a certain number of years know them lot better than most investors.
So when they ask management pointed questions about their growth, you know the triggers that you must look for.
So you get a treasure trove of information about a specific stock.
All of this is powered by the information from a single earnings calendar.
It is, therefore, a powerhouse in terms of providing market cues.
It is practically a one-stop shop that offers you every possible clue about the stock.
Using that one earnings calendar, you can estimate the business fundamentals.
It also offers future growth triggers and other growth catalysts.
It tells you the exact timeline when you can expect certain development.
That decidedly plays a key role in creating a convincing investment plan.
Cues For Futures Trade Tool
The Earnings calendar is a necessary tool for day to day trading.
Even if you see the way futures trade pan out, the earnings calendar offers crucial information.
Let us understand how a futures trade pans out.
Invariably, you have a host of speculative stock positions.
Futures is all about assuming that a particular development will happen in future.
The pricing is effectively based on these assumptions.
Let us say that the investors expect the price to go up or down on the basis of key factors.
The earnings is one such unique factor impacting stocks significantly.
I know that the earnings will be announced by a company in a specific month.
So if the estimates are already doing the rounds, then I can take a futures position based on that.
This will help me get an edge over other investors who may not track the earnings calendar.
Moreover, the information about earnings call is also available in the same calendar.
Investors can easily log on to these earnings call and tweak their futures positions accordingly.
They provide important outlook about the future that can easily help you to book meaningful profit.
Another reason why earnings can offer meaningful futures trade is that of the pre and post-market trade.
Many markets want to avoid the volatility in the regular trading hours.
So they go ahead and announce their earnings in post-market or pre-market trading hours.
Now if you already know the time when the earnings will be announced, you can easily position your trade accordingly.
It will help you get an edge over other investors who may not have access to either of the factors.
This is, therefore, one of the most important advantages of keeping a regular tab on earnings calendar.
Take Advantage of Historical Price Movements around Earnings
This is another way of gathering stock cues using the earnings calendar.
The earnings calendar is never about just future earnings date.
It practically records all the earnings date, previously and in future.
In that context, investors can also track the stock movement historically.
It will help you get a firsthand idea of how the stock is set to move.
This is useful as it becomes the key insurance against potential miss by analysts.
Let’s face it; analysts are human after all.
It is possible that they may not always be successful in anticipating the earnings.
There can be one-off triggers that can significantly impact the overall study.
More importantly, different analysts will employ different parameters to base their analysis.
But if you take a note of the previous earnings date from the results calendar, you can easily gauge the mood and the stock reaction.
Of course, this may change based on negative and positive results.
But tracing the historical charts will give you a basic insight on the trend and direction.
Analysis at that juncture becomes fairly easy.
It helps you important conclusion about the price trends in a specific stock.
The only way you are getting all the data and analysis is the earnings calendar.
It offers you a host of historic data and empowers investors with useful trading know-how.
Often this is the basis of many technical analysis.
So even experts refer to this historical data for better know how.
The whole idea is to take a peek into history and look for clues for future.
This will help in getting a much deeper and better understanding of specific stock behavior.
Needless to mention, it adds more power and depth to their market understanding and stock position.
Therefore, if you are looking for the single most power stock market tools, the earnings calendar is one such alternative.
What is striking is, it is inconsequential in itself but helps you get a truckload of information all at once.
You may not be able to track corporates one by one individually.
But the earnings calendar helps you get all the information under one title.
So in many ways, if you are looking for a ready reckoner in the market, the earnings calendar is the best option.
If you are looking for fundamental cues, technical assistance and want to dig into historical data, the earnings calendar is the best option.