Earnings Glossary
30 corporate earnings and financial terms explained in plain English. From EPS to XBRL, every concept you need to understand S&P 500 earnings reports.
Earnings Fundamentals
Earnings Per Share (EPS)
Net income divided by the number of outstanding shares, representing profit allocated to each share of stock.
Revenue
Total income generated from sales of goods or services before any expenses are deducted, also called the "top line."
Net Income
Total profit after all expenses, taxes, and costs have been subtracted from revenue, also called the "bottom line."
Earnings Call
A quarterly conference call where company executives present financial results and answer analyst questions.
Earnings Surprise
The difference between a company's actual reported earnings and the consensus analyst estimate, expressed as a percentage.
Earnings Season
The weeks-long period each quarter when most public companies report their financial results, typically starting mid-January, April, July, and October.
Financial Metrics
Gross Margin
The percentage of revenue remaining after subtracting the direct cost of producing goods or services.
Operating Margin
The percentage of revenue remaining after subtracting all operating expenses, showing profitability from core business operations.
EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization, a proxy for operating cash flow that strips out non-cash charges and capital structure effects.
Revenue Growth
The percentage increase or decrease in revenue compared to a prior period, indicating demand trajectory.
Year-Over-Year Growth (YoY)
The percentage change in a metric compared to the same quarter or period in the previous year, removing seasonal effects.
Sequential Growth (QoQ)
The percentage change in a metric from the immediately preceding quarter, showing short-term momentum.
Free Cash Flow (FCF)
Cash generated from operations minus capital expenditures, the actual cash available for dividends, buybacks, debt reduction, or reinvestment.
Same-Store Sales
Revenue growth from locations open at least one year, excluding new store openings to show organic demand trends.
Organic Growth
Revenue growth from existing operations, excluding acquisitions, divestitures, and foreign currency effects.
SEC Filings
10-Q Filing
A quarterly report filed with the SEC containing unaudited financial statements and management discussion, required for all public companies.
10-K Filing
An annual report filed with the SEC containing audited financial statements, a comprehensive business overview, and risk factors.
SEC EDGAR
The SEC's Electronic Data Gathering, Analysis, and Retrieval system, the free public database where all public company filings are stored.
XBRL
eXtensible Business Reporting Language, a standardized digital format for tagging financial data in SEC filings, enabling machine-readable analysis.
Analysis & Estimates
Forward Guidance
Management's public forecast of expected future financial performance, typically for the next quarter or full year.
Earnings Beat
When a company's reported earnings per share exceed the consensus analyst estimate for the quarter.
Earnings Miss
When a company's reported earnings per share fall below the consensus analyst estimate for the quarter.
Consensus Estimate
The average or median of all analyst forecasts for a company's EPS or revenue for a given quarter, representing Wall Street's collective expectation.
Analyst Coverage
The number of Wall Street research analysts who actively publish forecasts and research reports on a specific company.
Earnings Revision
A change in an analyst's EPS or revenue forecast for a company, either upward or downward, based on new information.
Earnings Quality
A measure of how sustainable and reliable a company's reported earnings are, based on the relationship between net income and cash flow.
Accruals Ratio
The difference between net income and operating cash flow relative to total assets, indicating how much of reported earnings is backed by actual cash.
Market Concepts
Price-to-Earnings Ratio (P/E)
A valuation metric calculated by dividing a company's stock price by its earnings per share, indicating how much investors pay for each dollar of earnings.
Sector Rotation
The movement of investment capital from one market sector to another, typically following economic cycle patterns.
Operator Signals
Frequently Asked Questions
What are earnings per share?
Earnings per share (EPS) is net income divided by outstanding shares. It tells you how much profit a company earned for each share of stock. Diluted EPS includes potential dilution from options and convertible securities.
What is the difference between a 10-Q and a 10-K?
A 10-Q is a quarterly filing with unaudited financial statements, filed within 40 days of quarter end. A 10-K is the annual filing with audited financial statements, filed within 60 days of fiscal year end. The 10-K is more comprehensive and includes a full business description and risk factors.
What is an Operator Signal?
An Operator Signal is EarningsCallAI's classification of S&P 500 companies as TAILWIND, HEADWIND, NEUTRAL, or MIXED based on their quarterly revenue trajectory from SEC EDGAR filings. It is designed for operators and founders, not traders.