Public companies in the U.S. are required to report their financial results every three months. The few weeks when most companies report are called earnings season. It happens four times a year, roughly mid-January, April, July, and October.

Why a 'good' report can crash a stock

Stock prices already reflect expectations. If everyone expected a company to earn $2.00 per share and they earned $1.95, the stock can drop hard even though earnings rose. The market trades on surprises relative to expectations, not on absolute numbers.

This is why a strong-looking report often barely moves a stock, the strength was already priced in, and a slightly weak guidance number can knock 10% off the share price in one afternoon.

What to read, if anything

• Press release headline number (revenue and EPS): usually compared to analyst estimates.
• Forward guidance: what the company expects next quarter or next year. Often more market-moving than the actual results.
• Conference call commentary: management's tone, big-picture remarks, and answers to analyst questions.

Sources

• U.S. Securities and Exchange Commission, How to Read a 10-K/10-Q: https://www.sec.gov/oiea/investor-alerts-and-bulletins/how-read-10-k
• U.S. Securities and Exchange Commission, Forms list: https://www.sec.gov/forms