Read the small print: Earnings season tips for spotting red flags on financial statements

Companies must follow accounting rules to allow apples-to-apples comparisons, but there are still ways to make bad news look like good news.As the third-quarter earnings season ramps up, markets are paying close attention to corporate financial statements. Meeting or beating expectations can have a critical impact on a company’s stock and, in many cases, management bonuses.

“If there’s one adjustment, and it’s consistent and it has always been that way for five years, you build a bit of a comfort level with it and the market doesn’t seem to mind,” he says. “I believe management never looked so great as when a stock is doing well and never looked so poor as when a stock is not doing well,” she says.

“In an inflationary environment, it was important to see that companies could maintain revenue growth by pushing pricing through. When inflation is coming down, you want to make sure companies have unit growth coming through,” she says.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Tesla and GM earnings preview, small modular reactors: CatalystsMonday's trading day shifts into high gear. To guide investors through the first full trading hour of the day, Seana Smith and Madison Mills break down the...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Stock market today: Nasdaq, S&P 500 step higher as Netflix jumps after earnings beatThe major gauges are on track for a sixth weekly win in a row after a strong start to earnings season.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Stock market today: Stocks rise amid big bank earnings, inflation dataJPMorgan and Wells Fargo get earnings season going in earnest while a wholesale inflation print is in focus after the CPI surprise.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Stock market today: Dow and S&P 500 notch record highs as earnings season kicks offThe Dow and S&P 500 soar to new highs as banks kick off earnings season
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Global shares flat, US yields fall as strong earnings allay election worriesThe Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »

P&G CEO weighs in on shrinkflation debate, better than expected earningsP&G chairman and CEO Jon Moeller explains his company's approach to pricing as lawmakers rail against shrinkflation.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »