FactSet Insight: Five Research Findings on Earnings Date Timing That Affect Trading

Read the full article on FactSet Insight.

Excerpt:

Third quarter earnings season recently began. To complement the slew of new reports, Wall Street Horizon looks at recent findings from RavenPack that continue to highlight the important information that can be culled from the timing of earnings dates. 

Anyone familiar with the Wall Street Horizon DateBreaks Factor or Late Earnings Report Index (LERI) knows that academic research supports the idea that companies that advance their earnings date tend to share good news on their earnings calls, while those that delay tend to share bad news. Stock prices then follow directionally. 

A new white paper, “Trading the Earnings Calendar,” (RavenPack, 2022), provides further research on this topic using Wall Street Horizon data, with five major findings that you should consider ahead of earnings season.