Timing of Earnings Reports: Understanding the Reporting Periods in the US and Abroad
The earnings reports are an essential tool for investors and stakeholders alike, reflecting a company's financial health and performance. In the US, earnings reports are typically expected after the first three quarters of a fiscal year, with both quarterly and annual reports following the end of the fiscal year. However, the timing can vary significantly based on the company's filing status and the region in which it operates.
The Import of Earnings Season
The earnings season, a time during which public corporations report their financial outcomes, is a critical period for financial analysts and investors. In the U.S., this typically occurs quarterly, i.e., in June, September, December, and March. The season usually lasts for roughly one and a half months, starting from the end of each quarter, and allows companies to close their books and consolidate data for reporting. Companies often strategically space their reporting to manage the volume of information, sometimes adjusting the order in which they release results.
Significance of Earnings Season
During this period, investors and stakeholders gain access to crucial information used to form opinions and make decisions. Financial outcomes, through analytical tools, help merchants and investors assess a company's current or future performance.
Filing Status and Reporting Requirements
In the United States, the timing and requirements for filing earnings reports are heavily influenced by the company's filing status. The Securities and Exchange Commission (SEC) categorizes issuers into different classes based on their global market value of voting and non-voting common equity held by non-affiliates as of the last business day of the issuer's most recently completed second fiscal quarter.
Acecelerated Filer
An accelerated filer is defined as an issuer that meets the following conditions:
The issuer had an aggregate worldwide market value of the voting and non-voting common equity held by its non-affiliates of 75 million or more but less than 700 million as of the last business day of the issuer's most recently completed second fiscal quarter. The issuer has been subject to the requirements of section 13a or 15d of the Act for a period of at least twelve calendar months, and has filed at least one annual report pursuant to section 13a or 15d of the Act. The issuer is not eligible to use the requirements for smaller reporting companies under the revenue test in paragraph 2 or 3iiiB of the "smaller reporting company" definition in this section as applicable.Large Accelerated Filer
A large accelerated filer is defined as an issuer that meets the following conditions:
The issuer had an aggregate worldwide market value of the voting and non-voting common equity held by its non-affiliates of 700 million or more as of the last business day of the issuer's most recently completed second fiscal quarter. The issuer has been subject to the requirements of section 13a or 15d of the Act for a period of at least twelve calendar months. The issuer has filed at least one annual report pursuant to section 13a or 15d of the Act. The issuer is not eligible to use the requirements for smaller reporting companies under the revenue test in paragraph 2 or 3iiiB of the "smaller reporting company" definition in this section as applicable.Understanding the specific filing requirements and timing for these different categories helps ensure that investors and analysts receive timely and accurate financial information, which is crucial for making informed decisions.
By adhering to these guidelines, companies can maintain financial transparency and provide valuable insights to their stakeholders, helping to build trust and confidence in the market.