Unlocking Company Earnings: Your Essential Guide
Intro
Understanding company earnings is more than just crunching numbers; it's about peeling back the layers of a company's financial health. For anyone involved in investing—whether you're a savvy analyst, a curious educator, or a promising student—gaining insights into earnings reports can significantly shape your investment choices.
Earnings reports provide a window into a company's performance, revealing profits, losses, and the overall financial pulse. But the terminology surrounding these reports can be quite daunting. By dissecting this information, you empower yourself to make decisions based on solid data rather than hearsay.
This guide aims to illuminate the essential aspects of company earnings, walking you through important definitions, common strategies for utilizing this information, and tools available for deeper analysis.
With clarity as our compass, we will navigate the murky waters of earnings, arming you with knowledge that can influence your investment trajectory.
Investment Terminology Basics
Key Terms Explained
To make sense of the earnings landscape, it’s crucial to familiarize oneself with the fundamental terminology. Here’s a breakdown of key terms:
- Earnings Per Share (EPS): This figure shows how much profit a company makes for each share of stock. The higher the EPS, the more attractive the company's earnings seem to investors.
- Net Income: This is the total profit of a company after all expenses and taxes have been subtracted. It’s usually found at the bottom of the earnings statement, hence the term 'bottom line.'
- Revenue: Sometimes referred to as sales, this represents the total amount of money received by the company before any expenses are deducted.
- Gross Profit: This indicates how much money a company makes after deducting the direct costs associated with producing its goods or services.
Each of these terms plays a critical role in deciphering the quality of a company's reported earnings. Misinterpreting any of them can lead to misguided investment choices.
Common Investment Strategies
Understanding company earnings goes hand in hand with knowing how to harness this knowledge through various investment strategies:
- Value Investing: Investors look for stocks that appear undervalued based on earnings metrics, hoping the market will eventually correct the price.
- Growth Investing: Here, investors seek companies with strong earnings growth potential, even if current valuations seem high. They focus on future potential rather than current profits.
- Dividend Investing: This strategy focuses on companies that regularly pay dividends, as consistent earnings often signal stability.
By recognizing these strategies, investors can better match their goals with the earnings potential of companies they consider.
"Knowledge is the best investment; understand the earnings to gauge where to place your bets."
Empowering yourself with these terminologies and strategies positions you to make informed choices that resonate with your investing philosophy. The next step will be to explore the practical aspects of accessing and analyzing earnings reports efficiently.
Understanding Company Earnings
Understanding company earnings is the cornerstone of financial literacy and analysis. This section aims to illustrate why grasping the concept of earnings is crucial for anyone involved in investments or financial decisions. The sheer ability to navigate through earnings data can unlock a treasure trove of insights—detailing not just a company's profitability, but offering glimpse into its operational efficiency and market positioning.
Company earnings serve as a reflection of how well a business is performing in the financial landscape. They are more than mere numbers; they depict the financial health of a company, influencing stock prices, investment strategies, and overall market perceptions. As investors or analysts, comprehending these earnings allows you to make informed choices while mitigating risks that arise from poor performance forecasts or market fluctuations.
In the ever-shifting world of finance, the analysis of earnings reports can also include consideration of external factors such as market trends and competitor performance. Understanding company earnings empowers investors to contextualize a company's financial data to its peers and industry standards. This holistic view is what separates successful investors from those who simply follow the herd.
The journey through earnings metrics begins in understanding that these figures are tied directly to the company’s operations, shaping how you will interpret subsequent data. Every earning report has its nuances, challenges, and stories to tell. It's important to approach this subject with a keen eye and analytical mindset to glean valuable insights.
What Are Company Earnings?
Company earnings refer to the net profit that a corporation makes during a specified period, after deducting all expenses, taxes, and costs associated with operations. It is the leftover income that can be reinvested back into the company or distributed to shareholders. Essentially, earnings can be seen as the lifeblood of a company—a measure of success or failure in the business realm.
When we talk about earnings, we often run into terms like "net income," "profit," or "bottom line." While they seem interchangeable, nuances do exist. Net income is a specific representation of earnings, and it's typically found at the bottom of an income statement. This figure grabs the attention of investors because it is a clear indicator of how well a company is performing financially.
The Importance of Earnings in Financial Analysis
Earnings play a pivotal role in financial analysis because they provide insights into profitability, operational efficiency, and future growth potential. For example, a steady growth in earnings year-over-year indicates a healthy business capable of responding to market demands and navigating through economic fluctuations.
Moreover, earnings can serve as a benchmarking tool, especially when comparing companies within the same industry. Investors often look at reports and ratios derived from earnings to identify promising investment opportunities. Metrics such as the Price to Earnings Ratio (P/E) are commonly used to gauge a company's relative value compared to its earnings.
Earnings reports can spark trading activities and influence stock prices dramatically. They also carry weight in the decision-making process of analysts and investors alike. Missing earnings forecasts, for instance, can lead to steep declines in stock prices as market confidence wanes. Therefore, understanding the implications of earnings is fundamental for sound investment strategies.
Types of Earnings Measurements
Net Earnings
Net earnings are the final profit a company achieves after all expenses are deducted. This measure is pivotal for shareholders because it reflects the company’s actual profitability. What makes net earnings a go-to figure for many investors is its clarity; it gives a snapshot of overall performance without getting lost in the weeds of various adjustments.
One unique feature of net earnings is its influence on dividends. Higher net earnings can result in higher dividends for shareholders, making it an appealing metric. However, it can also be misleading if a company has unusual gains or losses from one-time events, often leading to an inaccurate portrayal of a company's recurring profitability.
Earnings Before Interest and Taxes (EBIT)
EBIT is another crucial metric that provides an understanding of a company's operating performance without the effects of capital structure and tax rates. This is beneficial because it allows investors to evaluate how well a company can generate earnings from its core operations alone.
The key characteristic of EBIT is its focus on operational efficiency. It gives a cleaner perspective on a business's profitability before financial overhead costs come into play. On the flip side, while EBIT offers insights, it may not encapsulate the full picture of profitability since it neglects the effects of interest and taxes.
Earnings Per Share (EPS)
Earnings Per Share, or EPS, is a critical measure that divides net earnings by the number of outstanding shares. This figure is often seen as an indicator of a company's profitability on a per-share basis, making it easier to compare companies of different sizes.
The unique feature of EPS is its ability to help investors assess whether they are getting a good return on their investment. A higher EPS generally indicates better profitability, enhancing attractiveness for potential investors. Nevertheless, relying too heavily on EPS can lead to misinterpretation, especially if companies engage in share buybacks or accounting practices that manipulate share counts.
Sources of Earnings Information
Understanding the sources of earnings information is crucial for investors who want to dive deep into the financial health of a company. Having reliable and accurate data enables informed decision-making. It’s like having a compass when you’re navigating through financial waters—without it, you might just drift aimlessly.
Official Company Reports
Official company reports represent the backbone of financial information accessible to investors. These documents are a treasure trove of data and insights, covering various aspects of a company's performance. Often regarded as the most reliable sources, they provide a detailed picture of how a company is doing.
Quarterly Earnings Reports
Quarterly Earnings Reports offer a snapshot of a company's financial status every three months. This frequent reporting allows investors to keep their finger on the pulse of earnings performance as it unfolds over the year. A key characteristic of these reports is their ability to highlight trends and shifts in a company's financial situation more frequently than annual reports.
One unique feature of Quarterly Earnings Reports is the earnings call, where company executives discuss results and answer questions from analysts. This offers transparency and context that raw numbers alone often lack. However, these reports can also be a double-edged sword; focusing too heavily on short-term fluctuations can lead to knee-jerk reactions rather than well-considered investment decisions.
"Earnings can fluctuate wildly from quarter to quarter, and using them as the sole basis for decisions could be downright reckless."
Annual Reports (10-K)
Annual Reports, or 10-K filings, are an in-depth compilation of a company's financial information, covering the entire fiscal year. They include audited financial statements along with extensive notes, making them one of the most comprehensive sources of company data. The depth of detail in these reports helps in understanding long-term trends and strategic direction.
A significant element of the Annual Reports is the Management Discussion and Analysis (MD&A) section, where executives share insights about business strategies and operational risks. This feature makes the Annual Report a beneficial choice for investors looking to understand not just where the company stands, but where it aims to go. On the downside, these documents can be thick and quite dense, which may daunt some less-experienced investors.
SEC Filings
SEC filings are mandatory disclosures required by the Securities and Exchange Commission. These documents include a wide array of financial statements and disclosures that provide vital knowledge about a company’s operations and how it performs amidst regulatory standards. The uniqueness of SEC filings lies in their requirement for transparency—all material information must be disclosed, allowing investors to access a wealth of data that independent research might overlook.
These filings, particularly Form 10-Q (quarterly report) and 8-K (current report), keep users up to date on significant events after the quarterly report cycles. While often packed with regulatory jargon, the critical aspect of SEC filings is their reliability and comprehensiveness, giving investors an upper hand in risk assessment. Still, some might find them lacking in narrative context, leaving raw data without sufficient explanation.
Financial News Websites
Financial news websites supplement the information found in official reports. They provide analysis and commentary that helps investors interpret the numbers. These platforms become especially useful for those seeking fast, digestible insights into market movements or significant changes in earnings outlooks.
Stock Market Analysis Platforms
Stock Market Analysis Platforms bring another layer to earnings information. They aggregate data from various sources, enabling users to compare performance metrics, forecasts, and analyst ratings. Let’s dive into some popular platforms:
Bloomberg
Bloomberg is a heavyweight in financial analysis and news. Its comprehensive tools provide everything from real-time data to deep research reports. The sheer scale of Bloomberg's information is overwhelming but beneficial for serious investors. A notable feature is its proprietary analytics, which help in scrutinizing earnings trends through robust visualizations and comparisons.
However, access can be costly, making it less appealing for retail investors just starting.
Yahoo Finance
Yahoo Finance stands out for offering a user-friendly interface and an array of financial data. It's particularly appealing for those who want not just numbers but also insightful analysis without complex jargon. A key feature is its community forum that enables discussions about earnings reports and investment strategies. This accessibility is a significant advantage; still, some detailed financial metrics may not be as robust as those on more premium platforms.
Seeking Alpha
Seeking Alpha offers a blend of market data, news, and user-generated content that captures varied perspectives. Its focus on community-driven analysis means you can see diverse opinions on earnings reports. A unique aspect of Seeking Alpha is its contributor model, where investors share insights and critiques, creating a rich resource for those looking to understand different viewpoints on a stock’s performance. However, the variability in contributor quality can occasionally lead to mixed insights.
In summary, knowing where to gather earnings information is pivotal in navigating the investment landscape. Official reports remain indispensable, while news websites and analysis platforms can augment one’s understanding of market dynamics.
How to Access Earnings Information
Accessing earnings information is a cornerstone of making well-informed investment decisions. In a world where financial data bombards us from every angle, knowing where to find reliable sources can make a significant difference. This section will guide you through various methods of accessing company earnings information, including the importance of official websites, financial databases, and leveraging social media.
Utilizing Company Websites
Company websites serve as the first line of defense when hunting down earnings information. Typically, they contain extensive resources, especially in the Investor Relations sections.
Investor Relations Sections
The Investor Relations section of a company’s website is a veritable goldmine. This section is tailored for shareholders and potential investors, and it often houses quarterly earnings reports, press releases, and even investor presentations. The significant characteristic of this section is its focus on transparency; companies aim to provide clear and direct communication regarding their financial health.
The benefit of checking these sections is clear: you’re receiving information straight from the horse's mouth. However, one downside could be that the information might be too dense for casual investors, filled with industry jargon and complex metrics. Still, the rewards typically outweigh the challenges, especially for those who take the time to sift through it.
Press Releases on Earnings
Press releases related to earnings are another valuable source of information. These announcements are usually made immediately following earnings calls and provide succinct information about performance and expectations. Their primary feature is timeliness; they offer the latest updates that can impact stock prices right away.
They are advantageous because they usually come in a digestible format that wraps the essential facts eloquently. However, a potential pitfall is that press releases can sometimes omit context, meaning the numbers may not tell the whole story. Investors must complement this information with broader industry trends or consulting analysts for background.
Using Financial Databases
Financial databases can be likened to expansive libraries filled with a wealth of knowledge that goes beyond simple earnings data. Sites like Morningstar and FactSet are two prominent examples.
Morningstar
Morningstar stands out due to its comprehensive investment research and ratings. It gathers not only earnings data but also analyzes performance metrics and provides star ratings based on various criteria. This makes Morningstar a popular choice for investors and analysts alike who seek a well-rounded perspective on company earnings.
What makes Morningstar unique is its focus on long-term data and performance analysis. Though this depth is a boon, the downside is that some features require a subscription, which might not be practical for beginner investors or those on a budget.
FactSet
FactSet brings to the table a robust platform that integrates data analytics with financial insights. It captures timely earnings information, stock performance, and much more, all in one place. This characteristic makes it a beneficial tool for professionals who need detailed metrics at their fingertips.
What’s advantageous about FactSet is its customizable dashboards, allowing users to curate specific financial data they want to monitor. However, the intensive nature of the platform may come with a learning curve for new users, which could pose a challenge if someone is under time constraints.
Leveraging Social Media for Updates
In today’s digital era, social media is an ever-present tool that investors can utilize for real-time updates on earnings information and much more. Two notable platforms for this are Company Twitter Accounts and LinkedIn Updates.
Company Twitter Accounts
Twitter has become a quick-access point for real-time corporate communications. Companies often tweet important information, including earnings releases, directly to their followers. The key characteristic here is speed; information travels at lightning speed and can often lead to immediate reactions in the market.
Thus, following company accounts can be beneficial for those who want instant access to earnings updates. However, one must be cautious, as tweets often lack depth, providing only nuggets of information that might necessitate further research.
LinkedIn Updates
LinkedIn serves as a more professional platform where companies can share updates that include earnings information alongside strategic insights. The key feature of LinkedIn is its networking potential; investors can not only read posts but also engage with company representatives and fellow investors in the discussions.
The advantage here is the ability to gain a multifaceted perspective on a company’s performance. Yet, one should note that LinkedIn updates may not always be as timely as tweets, making it sometimes less suitable for rapid decision-making.
To maximize your access to earnings information, consider using a combination of company websites, financial databases, and social media platforms to create a holistic view of a company's financial health.
Interpreting Earnings Reports
Earnings reports serve as a window into a company’s financial health, offering investors a treasure trove of information critical for making informed decisions. The methods of interpreting these reports can illuminate trends, highlight weaknesses, and determine the viability of an investment strategy. The significant advantage of learning to interpret earnings reports lies in the fact that they reflect the company's economic reality. Accurate insights can empower investors to predict future performance and adjust strategies accordingly. However, investors must tread carefully, as a misstep in interpretation can lead to costly errors.
Key Metrics to Analyze
Revenue Growth
Revenue growth is a front-row seat to a company’s operational success. It's a straightforward metric showing how much a company’s sales have increased over a specified period, typically compared year-over-year or quarter-over-quarter. By focusing on revenue growth, investors gain insight into the company's robustness and its ability to attract and retain customers.
- Key Characteristic: It reflects demand for products or services.
- Why It’s Beneficial: Strong revenue growth can indicate that a company's products or services resonate in the market, which is a promising signal for investors.
- Unique Feature: It can reveal seasonal patterns in sales, important for industries with fluctuating demand. However, overemphasis on revenue growth without considering profitability can lead to pitfalls. If a company's costs rise alongside revenue, it might not signal a healthy business.
Profit Margins
Profit margins provide a lens into a firm’s efficiency in converting revenue into profit. This metric reveals how much of each dollar earned translates into profit after expenses are deducted. High profit margins typically suggest that a company is effectively managing its costs while maintaining pricing power, which attracts investors looking for stability.
- Key Characteristic: Reflects operational efficiency.
- Why It’s Popular: Investors prefer companies with higher margins as they indicate sound management and often correlate with market leadership.
- Unique Feature: Profit margins can vary greatly by industry. Thus, comparing margins with industry peers can offer a clearer picture. Sure, high profit margins are benefits, but they may also mask underlying issues like revenue stagnation or excessive tightness in expense management.
Year-over-Year Comparisons
Year-over-year comparisons, or YoY metrics, allow investors to see a company's performance against the same quarter from the previous year. They strip away seasonal variations, providing a clearer picture of growth trajectories and encouraging careful trend analysis.
- Key Characteristic: Offers context for evaluating performance.
- Why It’s Beneficial: These comparisons set a relatable baseline. Investors can see how a company is growing or declining in a more normalized manner.
- Unique Feature: They can spotlight trends that might not be as visible in quarterly comparisons, which can be skewed by seasonal demand. However, some businesses might exhibit extreme volatility; thus, relying solely on YoY figures can present a misleading representation of stability and growth.
Contextualizing Earnings with Industry Norms
To grasp the implications of earnings reports fully, it's indispensable to gauge performance through the lens of industry standards. Companies don’t operate in a vacuum, and the overall health of a sector plays a crucial role in interpreting earnings data. For example, a retail chain with flat revenue growth might seem worrying, but if the entire retail sector is facing headwinds, the context could make this more understandable. Considering industry norms can also highlight competitive advantages or weaknesses that might not be evident from earnings alone.
Evaluating Market Reactions
A critical element in interpreting earnings reports is observing the subsequent market reactions. Often, the market’s immediate response to an earnings report can either confirm or dispute its initial reading. Investors should pay attention to how stock prices fluctuate post-report release—an unexpected dip or surge can yield insights into market sentiment.
- Key Consideration: Understand the difference between actual earnings reported versus analyst expectations.
- Investor Insight: A small earnings beat in a volatile market might not carry the same weight as a larger beat in a stable market, making the context just as important.
As such, interpreting earnings reports effectively requires a multifaceted approach, blending qualitative and quantitative analyses. Through examining key metrics, contextual comparisons, and market reactions, investors can piece together a more comprehensive view of a company’s performance.
Utilizing Earnings Data for Investment Decisions
Understanding how to harness earnings data for investment decisions is crucial in today’s fast-paced financial climate. This data serves as a compass for investors, guiding them through the turbulent waters of the stock market. By analyzing earnings reports, investors can gauge a company's financial health and future potential, laying the foundation for informed investments.
Building an Investment Thesis
Crafting a solid investment thesis involves more than just a gut feeling. Investors must rely on hard data—particularly earnings information—to support their predictions. An investment thesis is akin to a narrative; it strings together insights from earnings reports, market conditions, and growth potential into a convincing story for why a particular stock deserves a place in one’s portfolio.
First, it helps to identify key indicators from earnings data, such as revenue trends, net income growth, and profit margins. These metrics reveal a company’s operational efficiency and market competitiveness. For instance, if a technology firm shows consistent earnings growth while investing heavily in R&D, one might argue that its future prospects are bright, leading to a strong investment thesis.
Risk Assessment Through Earnings Analysis
Analyzing earnings data can also illuminate potential risks associated with an investment. Not every seemingly lucrative opportunity is worth chasing. For example, one might look closely at earnings surprises—that is, discrepancies between expected and reported earnings.
A pattern of earnings misses can serve as a red flag, indicating possible issues such as poor management or waning demand. On the flip side, consistent earnings beats can signal a company’s ability to navigate challenges effectively. Here are a few aspects to consider:
- Volatility of Earnings: How consistent are earnings over different quarters?
- Guidance: What does the company forecast for future earnings? Understanding management’s outlook is critical.
- Market Comparison: Is the company performing better or worse than its industry peers?
Each of these considerations plays a role in evaluating risk, making it easier for investors to make prudent decisions.
Long-Term vs. Short-Term Earnings Focus
Deciding where to focus your attention regarding earnings—whether on long-term or short-term metrics—can shape your overall investment strategy. Short-term earnings reflect immediate performance, which can be enticing when seeking quick returns. However, they may also be misleading due to seasonality or temporary market fluctuations.
Long-term earnings, on the other hand, provide a broader perspective. They highlight the sustainability of a company’s growth and reveal whether it can withstand market pressures over time. Evaluating both perspectives provides well-rounded insight into a company's stability and potential for success:
- Short-term earning reports tend to fluctuate frequently, influenced by external factors and market sentiment.
- Long-term earnings trends, however, showcase the underlying health of the company, focusing on consistent growth and profitability.
In the end, the choice between long-term and short-term focuses depends on an investor ’s risk appetite and objectives. Some may prefer the thrill of rapid returns, while others might value the slow and steady approach.
Remember: "Investing without research is akin to driving blindfolded."
Navigating the fine line between understanding earnings data and making investment decisions can seem daunting. Yet, the ability to interpret these essential numerical stories can ultimately lead to more successful investment outcomes. Investors who embrace the multifaceted nature of earnings data always have a better chance of steering their portfolios toward prosperity.
Common Pitfalls in Analyzing Earnings
When it comes to analyzing earnings, even seasoned investors may stumble upon certain pitfalls. Understanding these common traps can save you from making hasty decisions that may lead to lost opportunities or financial misjudgments. In this section, we will deep-dive into three significant pitfalls: overemphasis on net earnings, ignoring earnings guidance, and misreading market sentiment. Recognizing these elements helps to shape a more robust investment strategy.
Overemphasis on Net Earnings
It's tempting to focus solely on net earnings when evaluating a company's health. After all, net earnings – the profit after all expenses have been deducted – presents a straightforward figure that appears to neatly summarize a company's performance. However, this single number may not paint the full picture.
For instance, a company can show a solid net earnings figure due to one-time gains or accounting adjustments that inflate profits. In reality, the ongoing operational performance might be lagging. Here are a few points to consider:
- Quality of Earnings: Investigate how much of net earnings stem from core business operations. If a large portion is due to asset sales or other non-recurring items, it may mislead investors.
- Comparative Analysis: Compare net earnings with cash flow or adjusted earnings metrics. A company might report good net earnings, but cash flow can tell a different story.
- Longitudinal Performance: Look beyond a single quarter or year. Trends are more telling than snapshots.
Ignoring Earnings Guidance
Earnings guidance is often a treasure trove of information, yet many investors overlook it. Companies routinely provide forecasts about future earnings, offering insights into management's expectations and strategic positioning. Disregarding these reports can lead to significant miscalculations in forecasting potential growth.
Consider the following:
- Market Expectations: Earnings guidance informs what the market anticipates. When actual results deviate from these expectations, it can result in drastic stock price adjustments.
- Management Insights: Understanding management's perspective gives clarity on their approach and company strategy. When they express optimism or caution, it can reveal underlying trends or threats that may not be reflected in current numbers.
- Timeframe: Distinguish between short-term guidance and long-term projections. A decade-long approach can often uncovers larger trends.
Misreading Market Sentiment
The saying goes, "the market can stay irrational longer than you can stay solvent." Market sentiment often reflects trader emotions and can heavily influence stock prices. Analyzing earnings reports without considering how the market might interpret them could lead to serious missteps.
- Emotional Reactions: Earnings surprises (both positive and negative) can trigger knee-jerk reactions. Stock prices may swing wildly in response to quarterly reports, regardless of the underlying fundamentals.
- Trend vs. Noise: Differentiate between meaningful trends and transient noise. A loud response to a quarterly miss might distract from the broader value story of a company.
- Possible Mergers or Acquisitions: Market sentiment can also shift based on potential M&A activities that could alter the earnings landscape.
In summary, being cognizant of these common pitfalls in earnings analysis allows investors to make more informed decisions. Balancing skepticism with optimism and maintaining a broad perspective on the factors affecting company earnings can lead to better investment choices.
Finale
The conclusion serves a pivotal role in wrapping up discussions surrounding company earnings in this article. As one reflects upon the complexities of earnings reports, it’s clear that each component examined contributes to a broader financial narrative that investors, analysts, and financial advisors navigate. Understanding the various measurements and sources of earnings information ultimately leads to a more profound comprehension of how these metrics influence investment decisions.
Summarizing Key Takeaways
In summarizing the key takeaways from the discussions, it’s important to recognize a few essential points:
- Earnings are not just numbers: They tell the story of a company’s financial health. Investors must look beyond net earnings to understand the complete picture.
- Data sources matter: Official filings, financial news websites, and stock market analysis platforms provide vital insights that influence strategic decisions.
- Contextual understanding is crucial: Analyzing earnings requires not only numerical data but also a grasp of industry standards and market sentiment. Without this context, the interpretations may lead investors astray.
"A wise investor knows that financial statements are windows into the company’s soul."
Future Trends in Earnings Reporting
As the landscape of corporate finance evolves, so too do the trends in earnings reporting. Several shifts are worth mentioning:
- Increased Transparency: There's a growing demand for clearer, more accessible earnings data. Companies are now more inclined to provide detailed explanations alongside their numbers, aiming to build trust with investors.
- Technology Utilization: With advancements in artificial intelligence and big data analytics, the future will likely see more sophisticated ways to interpret and predict earnings outcomes, allowing for a more data-driven approach to financial analysis.
- Focus on ESG Factors: With environmental, social, and governance issues becoming central to many investment strategies, future earnings reports may increasingly reflect a company’s performance in these areas as investors seek holistic evaluations.
