Betty Liu explains: earnings season & stock impacts | Money in :60 | GZERO Media

Hi, I’m Betty Liu, with your Money In 60 Seconds. So, each financial quarter, every publicly traded company reports their earnings performance and they usually create quite a buzz in the community. So, earnings reports are basically profit and revenue at a company. And analysts take a look at that because it’s a really good indicator of the health of a business. So not necessarily. What investors like to do is compare what the earnings are to the analysts’ expectations. And if there’s a big gap between the two, then you could likely see a big movement in the stock price. So, let’s say that the analysts’ expectations were for two dollars a share, but the earnings came in at a dollar a share, then very likely that stock price will fall. That’s your Money In 60 Seconds.

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