Ever heard of quarterly earnings reports? Quarterly earnings reports are reports released by public companies to show their performance. They are called quarterly reports as they are published after every three months. Usually, the quarterly reports are released in October, April, July & January. Companies report in quarterly earnings reports about their revenues, net sales, earnings per share, earning from other operations etc.
You might now wonder what the purpose of quarterly earnings reports is. Basically, these press release reports are an advertisement tool. When public companies declare their progress reports, they tend to attract more shareholders and investors. Also, these reports are to notify the company’s current shareholders about the progress that they’ve made. It then becomes easy for shareholders and investors to decide who deserve their investment. The benefit of releasing reports every three month is that in case a company’s progress is slow that investors could withdraw further investment.
An example of quarterly earnings release is Coca Cola’s release. It released its first quarterly income April 2016 reporting that its net revenue declined 4% while organic revenue grew 2%.
Companies know the consequences of legally been sued so the reports usually are crystal clear. In case of releasing wrong facts and figures, a public company has to face severe consequences in case legally sued, one of which is a sudden decline of reputation that public companies gain after a tough struggle.
The formats of press release for quarterly earnings are not always the same but usually a certain formats are followed. Below is a sample template for quarterly earning press release.
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