Using earnings | Robinhood

Using earnings

Earnings are like quarterly report cards for companies. During earnings, companies make a public announcement about their profits or losses, and give guidance on what to expect in the future.

Companies typically make earnings announcements in a press release, in a conference call (that you can listen to on Robinhood), or in an official filing with the US Securities and Exchange Commision (SEC) (10-Q).

It’s a good idea to pay attention to earnings calls because they’re one of the few times you can hear a company’s CEO share how their company is performing.

What’s the strategy?

If the earnings call gives people confidence in a company, stock prices often go up. If people lose confidence in a company’s performance, stock prices typically go down.

Checking if a company’s stock price goes up or down after earnings is a great gut check to see how well the market believes a company is doing.

Where to find earnings

You can find a company’s most recent earnings in the Earnings section of its stock detail page. The detail page also shows the amount of profit a company made in the most recent quarters in terms of earnings per share (EPS) along with their next earnings announcement date.

What’s EPS?

EPS, or earnings per share, is a dollar amount that represents the company’s overall quarterly profits divided by the number of shares in the market. This shows you the amount of profit the company made for each share of stock it has in the market.

Example

Let’s say MEOW has 1 million shares in the market and just announced $10 million in revenue, their EPS would be $10.

How to use EPS

Many investors use EPS to better understand a company’s profitability and ability to meet profit goals. When profits are higher, it may indicate that the value of the company’s shares will increase. The opposite is true for when a company’s profits are down.

Expected and actual EPS

You can find them in the Earnings section of the stock’s detail page:

  • Actual EPS is what a company reports with their earnings announcement
  • Expected EPS is what analysts predict a company’s earnings will be in the future

Disclosures

Robinhood U.K. Ltd (Robinhood UK) is authorised and regulated by the Financial Conduct Authority (FRN: 823590). Robinhood UK onboards UK customers and has the lead customer relationship with UK customers in relation to their use of the Robinhood UK app and website. Robinhood UK introduces UK customers to Robinhood Securities, LLC for order routing, execution, clearing, settlement, arranging custody services and margin lending to eligible UK customers with margin accounts. Robinhood Securities, LLC is regulated in the US by the SEC and FINRA. Robinhood UK and Robinhood Securities, LLC are subsidiaries of Robinhood Markets, Inc.

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Robinhood U.K. Ltd (Robinhood UK) is authorised and regulated by the Financial Conduct Authority (FRN: 823590). Robinhood UK onboards UK customers and has the lead customer relationship with UK customers in relation to their use of the Robinhood UK app and website. Robinhood UK introduces UK customers to Robinhood Securities, LLC for order routing, execution, clearing, settlement, arranging custody services and margin lending to eligible UK customers with margin accounts. Robinhood Securities, LLC is regulated in the U.S. by the SEC and FINRA. Robinhood UK and Robinhood Securities, LLC are subsidiaries of Robinhood Markets, Inc.

Robinhood U.K. Ltd is a private limited company registered in England and Wales (09908051).

Robinhood does not provide investment advice. Individual investors should make their own decisions.

Commission-free trading of stocks refers to $0 commissions for Robinhood self-directed individual brokerage accounts that trade U.S. listed securities and ADRs. Keep in mind, other costs such as regulatory fees may apply to your brokerage account. Please see Robinhood UK’s Fee Schedule to learn more.

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All investing involves risk and a loss of principal is possible.

Robinhood U.K. Ltd (Robinhood UK) is authorised and regulated by the Financial Conduct Authority (FRN: 823590). Robinhood UK onboards UK customers and has the lead customer relationship with UK customers in relation to their use of the Robinhood UK app and website. Robinhood UK introduces UK customers to Robinhood Securities, LLC for order routing, execution, clearing, settlement, arranging custody services and margin lending to eligible UK customers with margin accounts. Robinhood Securities, LLC is regulated in the U.S. by the SEC and FINRA. Robinhood UK and Robinhood Securities, LLC are subsidiaries of Robinhood Markets, Inc.

Robinhood U.K. Ltd is a private limited company registered in England and Wales (09908051).

Robinhood does not provide investment advice. Individual investors should make their own decisions.

Commission-free trading of stocks refers to $0 commissions for Robinhood self-directed individual brokerage accounts that trade U.S. listed securities and ADRs. Keep in mind, other costs such as regulatory fees may apply to your brokerage account. Please see Robinhood UK’s Fee Schedule to learn more.

UK Privacy policy

© 2024 Robinhood. All rights reserved.