earnings call
A quarterly conference call where a company's management presents financial results and discusses outlook with analysts and investors.
Example
“During the earnings call, the CEO disappointed analysts by guiding for lower revenue growth in the next quarter.”
Memory Tip
EARNINGS CALL = quarterly phone call where companies explain their results and outlook.
Why It Matters
Earnings calls help individual investors and savers understand whether companies they own stock in or are considering investing in are performing well. By listening to or reading summaries of these calls, you can make more informed decisions about your investment portfolio and financial goals.
Common Misconception
Many people think earnings calls are only for professional investors and analysts, but individual investors can listen to them for free through company websites or financial platforms. These calls provide the same information to all listeners at the same time, giving retail investors access to the exact same insights as wealthy institutional investors.
In Practice
Suppose you own 100 shares of a tech company trading at 50 dollars per share. During their quarterly earnings call, management announces they missed revenue targets and are cutting their workforce by 15 percent. This news causes the stock to drop to 42 dollars per share, so your investment loses 800 dollars in value. Had you listened to the call, you might have sold beforehand or understood the risks you were taking.
Etymology
EARNINGS (financial results) CALL (telephone conference). A CALL (conference) discussing EARNINGS results.
Common Misspellings
Track markets & get real-time stock data
Related Terms
More in markets
Other markets terms you should know
See Also
Need financial definitions?
Clear definitions for 2,500+ finance, insurance, and investing terms.