During the financial year, the company income statement a total of four times — three quarterly reports are submitted in 10-QS, and one annual report for the fourth quarter Information is included, served in the 10-K. earnings carefully as they show the profitability of the company compared to analyst estimates and company management. The Sec requires that companies file 10-QS within 45 days after the end of the quarter and 10-KS must be filed no later than 90 days after the end of the financial year.
Why the earnings Release may be delayed
Sometimes, companies to delay the release of earnings for some unforeseen reason. However, most often, the delay is in the result, the company not completing the report on time because of the checks takes longer than expected, inexperienced officers to complete its first report and the firm loses part or all of their financial data in connection with a technical error, fire or theft. Although the company may file a statement later than expected, sometimes it will affect its share price.
If the company announces that it is filing later than expected, investors may take it as a sign of a bad earnings surprise, and sales may follow. Lower prices can be extended with noise traders and technical analysts who can follow those who are selling their shares.
What Should Investors Do?
A smart investor needs to keep in mind that it is best to do them in the attack, as it is to consider why the company has delayed its production, and/or wait for information to be released about what the reasons are valid. It is also important to see how the new data matches the original investment thesis.
One possible winner in this case is the opposite investment style that goes against prevailing market trends — in fact the opposite may now pick up relatively cheaper stocks, which will increase any win in the future.
(To learn more about earnings, earnings to read: Quality means everything, or everything you need to know about earnings.)