Earnings for All Seasons

Woman saving her earningsWhile nature offers four seasons, Wall Street offers only one – four times a year. It’s called “earnings season,” and it can move the markets. So, what is earnings season, and why is it important?

Earnings season is the month of the year that follows each calendar quarter-end month (January, April, July, and October). It is the time during which many public companies release quarterly earnings reports. Some public companies report earnings at other times during the year, but many are on the calendar year that ends December 31.[1]

Reported Earnings

To understand the importance of earnings, we need to remember that the value of a company can be tied to the amount of money it earns. Some companies don’t have earnings, and they are valued based on their potential rather than their current earnings.

Wall Street analysts maintain a close pulse on a company’s quarterly report to help estimate future earnings. For example, these estimates may guide investors in determining an appropriate price for a company’s stock. Remember, a company is not permitted to discuss interim earnings with select individuals; earnings reports must be disseminated publicly to level the playing field for all investors.[1]

An Inside Look

When an earning s report is released, it tells the market two things.

First, it offers an insight into how the company is performing and what its prospects may look like over the near term.[1]

And second, the report can serve as a bellwether for similar companies that still have not reported. For instance, if the earnings of a leading retailer are strong, it may offer an insight into the earnings of other retailers, as well as other companies that similarly benefit from higher consumer spending.

What Time?

Earnings reports are generally released when the market is closed in order to provide market participants adequate time to digest the results. Earnings reports may move markets. If earnings diverge from the expectations of professional investors and traders, then price swings – up or down – may be significant. Such a divergence is referred to as an “earnings surprise.”

If you are a “buy-and-hold” investor and feel confident in a company’s long-term prospects, earnings season may mean little to you, since short-term results may not impact your long-term outlook. However, earnings reports can be meaningful if an earnings shortfall reflects a structural problem with a business or represents the continuation of a downward trend in earnings.

For that reason, it may be wise for you to keep an eye on earnings season. Information about growth, decline, and other changes to a company can be important in understanding the value of maintaining certain investments.

“One person can make a difference, and everyone should try.”

– John F. Kennedy

Recipe of the Week

Classic Tomato and Bread Soup

Classic Tomato and Bread Soup

Serves 6


  • 1 medium onion

  • 4 Tbsp. olive oil (divided)

  • 4 to 6 cloves garlic, minced

  • 2, 28-oz. cans whole, peeled tomatoes

  • 2 to 3 bay leaves

  • 2 cups of chicken stock

  • 1½ cups of cubed, rustic bread (best to use day old)

  • 1 tsp. dried oregano

  • Pinch of chili flakes

  • Approximately ½ tsp. salt, to taste

  • Fresh ground pepper, to taste

  • Freshly grated Parmesan cheese

  • Chopped fresh basil or parsley, for garnish


  1. Begin by adding the olive oil to a 5- to 6-qt. Dutch oven, warmed on medium heat. Sauté onions until translucent. Then, season with salt and pepper, add minced garlic, and cook for a few additional minutes.

  2. Next, crush the tomatoes by hand, and transfer into the pot.

  3. Add the chicken stock, bay leaves, and dried oregano. Heat to a simmer, then reduce heat to maintain a low simmer. Cook for about 20 minutes.

  4. Warm up a large frying pan on medium heat and add the remaining olive oil into a sauté pan. When the oil is hot, evenly spread the cubed bread in the pan. Toss to coat with oil and brown the sides of the bread evenly.

  5. After the soup has cooked for approximately 20 minutes, add the browned bread cubes. Cook for about 5 more minutes, then turn off the heat, cover the soup, and let stand for 15 minutes. Remove the lid, then extract the bay leaves and discard.

  6. Set aside about ⅓ of the soup. Purée the rest with an immersion blender or pour it into a food processor and blend until smooth. Re-incorporate the blended and unblended soup. Pour into bowls and serve with grated Parmesan and chopped fresh parsley or basil.

Recipe adapted from Simply Recipes[2]

Tax Tips

Mileage Rates Increased for 2019*

Each year, the IRS issues standard mileage rates used to calculate the deductible costs of operating vehicles for business, charitable, medical, or moving purposes.

As of January 1, 2019, the rates for vehicles used for the above purposes are:

  • 58 cents per mile driven for business use
  • 20 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

The IRS determines the standard mileage rate for business use based on an annual study of fixed and variable costs of operating a vehicle. The rate for medical and moving purposes is based on the variable costs.

Taxpayers have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

* This information is not intended to be a substitute for specific, individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS.gov[3]

Golf Tip

Take Your Wedge into the Sand… and Beyond

Many people think a sand wedge is only for the bunker. But really, you should use your sand wedge for bunker shots and most pitch shots to the green.

It’s important to remember that the sand wedge has “bounce” on the sole of the club, meaning the back trailing edge is lower than the front leading edge. When used properly, or “improperly,” as the case may be, the very forgiving design built into your sand wedge could help in a variety of lies and situations.

Try using it on your short approaches instead of a pitching wedge – you may be surprised!

Tip courtesy of Jay Perkins, PGA[4]

Healthy Lifestyle

Collagen Regenerates and Renews

Collagen is an abundant protein in the body, which regenerates and forms new tissues, but is poorly produced and replaced as we age. Studies have shown that supplementing with collagen may yield health benefits:

  • Faster exercise recovery: those who supplemented with 3 grams of a collagen extract significantly improved their exercise recovery rates.
  • Help for arthritis: collagen supplements reduced pain and inflammation in people diagnosed with osteoarthritis.
  • Younger-looking skin: taking 2.5 to 5 grams of collagen daily resulted in significantly higher skin elasticity as well as improved skin moisture. Additionally, women who took 1 gram of collagen extract showed a significant reduction of dry, scaling skin, reduced lines and wrinkles, improved circulation, and a significant boost in overall collagen levels in the skin.
  • More benefits. Taking the supplement stimulates tissue regeneration and slows the loss of bone density.

Be sure to research the type or types of collagen to support the benefit you are seeking, and tailor the variety and dosage to your individual needs.

Tip adapted from Amazing Wellness Magazine[5]

Green Living

Clean, Green Tips for Your Business

Greening your business is not only good for the environment, it is meaningful to your customers. It shows you care about the environment, the future of the planet, and that you’re doing your part to encourage others to do the same. Here’s a few ways to go green in business:

Say no to waste: Provide recycling bins and encourage employees to know how and what to recycle. Use recycled paper and limit waste with reusable utensils.

Lighten up with energy-efficient LEDs: LED lights are nearly 80% more efficient than standard light bulbs. Use smart power strips and timers to maximize energy savings.

Keep track: Knowledge is power, literally, when it comes to saving energy. Set energy saving goals and keep track with energy consumption calculators you can find online.

Save water: Saving water at work is easy with water-efficient toilets, automatic taps, sustainable landscaping, and rooftop rainwater collection.

Tip adapted from Leaders in Energy[6]

[1] investopedia.com/terms/e/earningsseason.asp
[2] www.simplyrecipes.com/recipes/tomato_and_bread_soup_pappa_al_pomodoro/
[3] www.irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2019
[4] www.pga.com/golf-instruction/golf-tip-day/hybrids-and-irons/handy-sandy
[5] amazingwellnessmag.com/departments/buying-using-collagen
[6] leadersinenergy.org/tips-and-tricks-for-clean-green-business-operations/