research Market Intelligence /marketintelligence/en/news-insights/research/the-dating-game-decrypting-the-signals-in-earnings-report-dates content
BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR
PRIVACY & COOKIE NOTICE
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *

* Required

In This List

The Dating Game: Decrypting the Signals in Earnings Report Dates

Concentration and Cross Holdings of Chinese Banks

EMEA Struggles To Attract PE Investment As Year's End Approaches

Public Companies Going Private

Banking, Corporations, Insurance, Professional Services

The Market Intelligence Platform Experience


The Dating Game: Decrypting the Signals in Earnings Report Dates

Highlights

Investors should take note when companies deviate from a historical reporting pattern.

Companies that postpone a previously announced earnings release date underperform the broad market by 2.44% in the 3 days surrounding the announcement.

In this report we explore the possibility of investors using the timing of a company’s earnings release date to identify firms likely to report better than expected or disappointing results. The Securities & Exchange Commission (SEC) requires public entities to file financial statements within a specified time window, though companies have discretion as to when they report within the window. Many companies choose to report on a pre-determined cycle, for example, announcing second calendar-quarter results each year on the second Tuesday of July.

The first part of this report focuses on companies that deviate from a historical reporting pattern. What does an advancement or delay of an earnings report date typically say about a company’s fundamentals, and should investors take notice of this event? The second part of this report examines a related topic – the market’s reaction to companies that postpone a previously scheduled (announced) earnings release date.

Learn more about Informed Decision
Click Here



Findings include:

  • Investors should take note when companies deviate from a historical reporting pattern. “Advancers” (companies that advance their earnings report date by at least 6 days) are likely to report improving year-year on sales, better earnings surprises, and more positive conference call sentiment readings than their industry group peers and “delayers” (companies that delay their earnings report date by at least 6 days).
  • Due to their higher quality fundamentals, advancers outperform delayers with results much stronger within smaller capitalization stocks. Advancers outperform delayers by over 7% on an annualized basis (Russell 3000). However, long-short return rises to 8.80% (Russell 2000) and falls to 2.21% (Russell 1000).
  • The advance/delay signal can be used to enhance the performance of a multi-factor stock selection strategy. The annualized return to stocks identified as buy candidates and tagged as advancers is 10.77%, compared to 6.29% for buy candidates tagged as delayers, with the difference in return significant at the 5% level.
  • Companies that postpone a previously announced earnings release date underperform the broad market by 2.44% in the 3 days surrounding the announcement. These companies are also likely to report deteriorating fundamentals, with earnings per share down by about 16% compared to the same period a year ago.
Learn more about Market Intelligence
Request Demo

Bridges for Sale: Finding Value in Sell-Side Estimates, Recommendations, and Target Prices

Learn More

Natural Language Processing – Part II: Stock Selection

Learn More