12 pictures easy to read and understand results
Is the earnings good or empty? Focus on these 4 points!
The company made a fortune report, how to judge its good or bad? There are many places to look at, but we can simplify it, focusing on the following 4 key points.
1. Revenue growth
Mainly look at the absolute value of growth rate, whether the company accelerates growth. At the same time also depends on the growth of the industry, the growth rate is best faster than competitors in the same industry.
2. Net profit growth
The same is to look at the absolute value of growth rate, observe whether the growth of the company accelerated or slowed down. It also depends on the comparison of net profit growth and revenue growth. If it is higher than revenue growth, it is a good signal to improve profitability, and vice versa is not a good thing.
3. Actual performance VS analysts expect
For some larger companies, analysts forecast revenue, net profit, or EPS (EPS) for current and future quarters before the results are released, forming a consistent forecast (average of forecast numbers). If the earnings report results are higher than analysts expected, a larger positive may boost short-term price movements. On the contrary, pressure on short-term stock price movements.
4. Performance Guidelines VS Analysts Expected
Some companies will publish guidance for the next fiscal quarter after their current earnings. If the guidance is higher than analysts expected, it will create a positive price gain and negative vice versa.
So, what factors have the greatest impact on short-term stock price? In the stock market, the future may be more important than it is now, and expectations are more important than actual.
Of the above 4 factors, performance guidance is a guide to future expectations and therefore the most important; analysts forecast of the current quarterly earnings report compared to actual results, is the second importance of expectations; while revenue growth and net profit growth are actual performance figures that may have been expected by the market The stock price has been reacted in the past, so the importance comes last.