Quarterly earnings filings (press releases, 8-K’s, and 10-Q’s) are filings that every publicly traded company in the United States must submit every fiscal quarter of the year. Each quarter typically lasts three months. That said, each company may adhere to a different schedule.
A 10-Q is mandatory at the end of each quarter and is often preceded by a press release. An 8-K, however, is not required quarterly. It is mandatory only when the company must inform shareholders of an unscheduled event. Companies should have their documentation published on time to avoid SEC penalties.
Analysts and investors frequently use quarterly earnings filings to assess a company’s performance. In this article, we will explain how to read three types of quarterly earnings filings for investors.
What is a Quarterly Earnings Filing?
A quarterly earnings filing is an EDGAR filing (or multiple filings, depending on the company’s individual circumstances) that a publicly traded company within the United States must file every quarter when disclosing earnings. These filings provide further detail on how the company has managed its finances alongside current operating results.
In this article, we will analyze three different quarterly earnings filings: the press release, the 8-K, and the 10-Q.
The press release often comes before either the 8-K or the 10-Q. The press release’s job is to inform the public media about an event the company deems newsworthy. It is often much broader and informal than a filing, such as an 8-K or a 10-Q, as it helps both investors and non-investors understand the information. The press release includes statistics and financial disclosures from the filings, comments and/or concerns from management, and information about upcoming and/or recent events.
Unlike the press release, the 8-K lists only factual information. The 8-K is a mandatory filing submitted when the company must inform shareholders of an unscheduled material event or corporate change. Both earnings reports and financial statements can be included in the 8-K, as companies may be required to elaborate on them. Other typical 8-K events may include a new acquisition, a change in fiscal year, a resignation from an important management position, or a bankruptcy. If needed, significant updates to the company’s financial statements are reported via Form 8-K. If the prior financial statements are no longer accurate, an 8-K can also be used to report this to shareholders.
The 10-Q is also a mandatory, detailed report on the company’s financial condition for the past quarter. The 10-Q is the first official financial disclosure or “earnings release” on a company’s financial condition, particularly through the income statement, balance sheet, and cash flow statement. There are also sections within the 10-Q that detail management’s opinion on how the past quarter has progressed. Extra commentary on potential risk factors or legal troubles is also provided.
How Quarterly Earnings Are Released: The Typical Timeline
The typical timeline of quarterly earnings release is usually done in the order of press release → 8-K (when necessary) → 10-K.
The press release is usually issued before the earnings filings, as it can influence both the stock price and public perception. Depending on the content and timing of the press release, it may influence investor reactions before the complete filings are available.
Through the published 8-K or 10-K, the information originally provided in the press release is expanded. The press release is geared more toward journalists and the media. This can lead to it being publicized through the company’s Public Relations (PR) department. By comparison, the 8-K and 10-K are fact-based filings, which is why they typically follow the press release and provide statistics rather than a publicity-oriented explanation.
What to Look For in an Earnings Press Release
Press releases provide critical information that investors and shareholders need. The press release shares the company’s financial results for the quarter (or the year, in a 10-K filing) with the media. Sharing it with the media ensures the information is easily accessible to the public. Revenue, profits, expenses, and losses are all covered within the press release. Even if the press release lists only the most important statements, the amount of information presented may still be overwhelming. In this section of the article, we will explain what investors should look for in an earnings press release.
The most essential elements to look for in an earnings press release are key performance indicators, management quotes, and media or tables presenting the financial statements. Key performance indicators to monitor include growth rates, profitability (e.g., growth and net profit margins), and operating expenses. Together, these indicators provide investors with a clear view of the company’s health.
Quotes from management are key, as they can add context to the numbers. For instance, the performance indicators point to higher or lower company revenue in the past quarter. If revenue was low, management’s statements may offset this by reassuring investors that they are working hard to increase profits. Media infographics and tables serve a similar purpose, presenting data in a way that is easy for a potential investor to understand. Graphs comparing past and current results or tables organizing financial statements provide a clear overview of the statistics without overwhelming the reader.
How to Read an 8-K Earnings Release Filing (& What It Includes):
An 8-K Earnings Release Filing is a form filed with the SEC that reports quarterly financial results. Companies commonly file an 8‑K under Item 2.02 (Results of Operations and Financial Condition) and attach the earnings press release as an exhibit (usually Exhibit 99.1). That makes the earnings information formally furnished to the SEC and easier to treat as the “official record” for compliance/documentation purposes.
An 8-K is required within at least four days of the event to keep shareholders informed about the company’s affairs. An 8-K contains two main parts: a description of the unexpected event and any supporting materials that explain it.
Reading an 8-K filing is straightforward because all parts reference the same event. If the event is a bankruptcy, figures from the company’s financial statements can help explain why it occurred. If it is an important change in management, the 8-K will use statements from the new hire and resignee. The resources used help bolster the 8-K’s factual explanation of the problem.
Key Company Filings (and How Investors Use Them)
Companies share earnings releases and information through a mix of announcements, presentations, calls, and required regulatory filings. Each source serves a different purpose—some are built for speed and headlines, while others are designed for detailed, standardized financial analysis. Here’s what each one typically includes and when investors lean on it most:
| Filing | Content | How Investors Can Use It for Earnings Analysis |
| Press Release | Publishing by the company’s PR to inform the public/media about the company’s dealings | When looking for quick facts or before the 8-K or 10-Q’s release, which is critical for early trading |
| 8-K | Most of the time, the 8‑K doesn’t add new or different earnings numbers—it simply files the same press release with the SEC as an exhibit (typically 99.1), though it can sometimes include extra supporting exhibits (like slides or reconciliations) and only rarely reflects corrections or revisions. | Investors can check this for any additional changes, such as slides or other company information not included in the press release. Each company has a different standard protocol for these. |
| Earnings Deck | Visual presentation that shows the company’s financial performance | When assessing a company’s financial health as part of an overall analysis, this can be helpful for further analysis and understanding as you dive deeper. |
| Earnings Call | Live meeting where management verbally discusses the results with the public | When looking for management’s comments on the earnings deck or press release, or looking for even more information, as you can communicate with management directly. |
| 10-Q | Detailed quarterly report of financials that companies file to officially disclose their quarterly performance, which includes MD&A, financial statements, footnotes (explaining the financial statements in the press release), etc. What to look for in a 10-Q filing | Best used when analyzing the company’s key operating details over the last three months and how those operations affected the financials initially reported in the press release. |
How to Read a 10-Q Quickly: The Best Order for Investors
The 10-Q includes numerous figures on the company’s finances. Still, there are a few that are of utmost importance for investors. Here, we outline the best order for reading a 10-Q to gather all the information needed to make a proper investment decision.
First, investors should read or skim through the Management’s Discussion and Analysis (MD&A). The MD&A is a series of statements from the company’s CEO and staff, in which they offer their perspectives on how the company has performed. These statements provide details on the company’s revenue, costs, and profitability. Reading the MD&A before analyzing the company’s financial statements offers additional context and alerts investors to potential issues.
Second, investors should review the three financial statements: the income statement, the balance sheet, and the cash flow statement. These statements present key metrics, including revenue, margins, EPS trends, and cash flow. All three provide a clear view of the company’s inner workings, giving investors a glimpse of its current standing. These metrics are crucial for helping investors decide whether to continue or begin investing.
Third, investors should review the Risk Factors/Legal Trouble. Here, the 10-Q outlines potential risks and legal proceedings the company faces. Reading this section is essential, as a long Legal Trouble or Risk Factors may indicate that the company is in a fragile position. The potential risks typically fall into four categories: strategic (poor decision-making, competition from similar companies), operational (technological failures), financial (unmanaged cash flow, market conditions), and compliance/legal (legal issues).
Investors are advised to read the 10-Q in the following order: MD&A, financial statements, and Risk Factors/Legal Trouble. This order provides the investor with a comprehensive view of management’s comments, financial decisions, and potential risks for the quarter or year ahead.
Key Financial Statements to Check in Quarterly Earnings Filings
As described above, the three financial documents in 10-Q filings are the income statement, the balance sheet, and the cash flow statement. Within each, there are certain signs that investors may want to study.
Income Statement
The income statement is a view of the company’s financial health over a set period of time. For a 10-Q filing, the period is three months. The income statement measures profitability, indicating whether the company earns more than it spends. This report also tracks the company’s purchases and investments (expenses) and the profits earned (revenue) throughout the quarter.
The income statement also reports margins, which are the differences between the selling price and the cost of producing the item. The company’s earnings per share (EPS) is also presented on the income statement. EPS is the amount of profit a company earns per share of common stock. Generally, the income statement provides a broad overview of how the company manages its finances and makes decisions.
Balance Sheet
The balance sheet is a snapshot of a company’s assets, liabilities, and shareholders’ equity at a specific point in time. Assets are what the company owns, and liabilities are what the company owes. Shareholder equity refers to the value that would be returned to the company’s shareholders if assets and debts were both fully paid off. The balance sheet shows a company’s cash balance as of the date it was published. The amount of cash the company had at that time indicates whether its financial decisions were well or poorly executed. The balance sheet also shows the company’s current debt relative to its cash reserves.
The balance sheet also reflects the company’s liquidity. Liquidity is the speed with which a company’s assets can be converted into cash, which is vital for investors. A higher liquidity ratio (calculated by dividing current assets by current liabilities) indicates that a company can likely meet its short-term obligations with relative ease.
Cashflow Statement
The cash flow statement is a comprehensive statement of how cash flows into and out of the company over a given period. The sections of the cash flow statement include operating activities, investing activities, and financing activities, among others. Within the Operating Activities are the cash flows that sustain a company on a day-to-day basis. Inflows may come from sales and fees (among others), while outflows may be going to utilities, taxes, or employee salaries, for example. Investing activities are related to Capital Expenditures (CapEx). CapEx is an outflow of cash that primarily funds long-term assets to improve the company. It depends on the company’s primary purpose, but these investments may include property or equipment improvements. When Operating Activities and CapEx are subtracted, the result is known as Free Cash Flow. This is the cash the company generates after operating and capital expenses, which it can use at its discretion.
Earnings Red Flags and “Earnings Quality” Checks to Watch For
With all this varied information comes the question: what should investors consider a bad sign, and where in quarterly earnings filings can they be found?
Red flags in quarterly earnings filings are crucial to review. Red flags can appear throughout the press release, the 8-K, and the 10-Q, making it all the more important to identify them.
Some of the metrics investors should consider include revenue, margins, and losses. Is the revenue increasing or decreasing? Are the margins shrinking or improving? Are the losses rising or falling? Other indicators include debt levels, which reflect the company’s current health. Cash flow, and whether it is appropriately managed. Additionally, statements from management, especially if they are evasive or too cautious.
| Red Flag | What does it indicate? | Where to find it? |
| Decreasing revenue | Business generates less total money | Income statement |
| Shrinking margins | Business makes less profit with each sale | Income statement |
| Rising losses | The business’s expenses are higher than its revenue | Income statement |
| Increasing debt | Business may be growing, but it is at a higher financial risk with more debt | Balance sheet |
| Poor cashflow | Business is not managing its money properly | Cashflow statement |
| Evasive Management Statements | Management is reluctant to explain potential and/or growing issues within the business. | MD&A, Press Release |
How to Compare Quarterly Earnings (QoQ vs YoY vs Guidance)
To compare quarterly earnings, there are three distinct methods: QoQ (quarter-over-quarter), YoY (year-over-year), and Guidance (a forecast of expected earnings, revenue, and spending). Comparing quarterly earnings is common for investors to assess how the company has performed over several quarters, a year, or against forecasted earnings.
QoQ is often used to analyze short-term growth because a quarter lasts only three months. In these three-month comparisons, investors can assess short-term trends and the effectiveness of recent strategies. If something went wrong, the next quarter reflects the steps the company may have taken to resolve it.
YoY is used to assess a business’s performance over an extended period of time. This offers the investor more time and detail to analyze core functions. In the YoY, investors can find large-scale investments and their returns, company revenue growth (or decrease), and longer economic trends.
Guidance is the company’s forward-looking outlook for metrics like expected revenue, earnings, and spending, based on internal forecasts and management’s assumptions. It matters because markets price stocks on expectations, so changes in guidance can move a stock quickly and shape how investors view the business. When guidance is stronger than investors anticipated, the stock often rises as confidence improves; when it’s weaker than expected, the stock can drop and sentiment can deteriorate. Importantly, negative guidance isn’t a permanent verdict—companies can outperform their outlook—but guidance still plays a major role in short-term price movement and public perception.
In summary, Quarterly Earnings Filings (press releases, 8-K’s, and 10-Q’s) are files a publicly traded company must publish every quarter of the fiscal year. They provide valuable insight into how a company’s financial health is through the three financial statements: the balance sheet, income statement, and cash flow statement. Other important parts of the filings are the Management’s Discussion & Analysis and the Risk Factors/Legal Proceedings.
Through thorough analysis of Quarterly Earnings Filings, investors can gain knowledge about a company they wish to invest in and make sound investment decisions.
FAQ: Quarterly Earnings Filings
Where can I find the Quarterly Earnings Filings?
Quarterly Earnings filings can be found below:
- Quarterly Reports, which shows 10-Q filings
- 8-K earnings releases
- Company filings pages found through our SEC filing search
- For other earnings calls/conference information, visit the company’s IR website.
What is the difference between an 8-K and a 10-Q?
An 8-K is used only to announce unscheduled material or corporate changes, and must be filed within four days so shareholders have time to react. A 10-Q is required and provides a detailed report on the company’s financials. It must be filed quarterly (every 3 months).
What are the key components of a 10-Q?
The key components of a 10-Q are the Management’s Discussion and Analysis (comments from management), the three financial statements (income statement, balance sheet, cash flow statement), and the Risk Factors/Legal Proceedings section (any legal troubles the company currently faces).
What are the key financial metrics to analyze in Quarterly Earnings filings?
The key financial metrics to analyze include revenue, margins, losses/gains, debt, cash flow, and the MD&A.