Earnings on Speed Dial: Why Quarterly Calls Matter

Investors who want the full story behind a company's quarterly earnings should consider looking beyond the press release, headline numbers, and scattered bits of financial news coverage.

Most U.S.-based, publicly traded companies hold earnings calls with investors and analysts after each quarter's results. These calls, during which executives give their thoughts and then respond to questions, can give investors a courtside seat into a company's successes—or struggles. The earnings calls often focus on individual product performance, competitive pressures, and what issues might be keeping executives awake at night. For investors, they offer a fertile source of human-generated detail and a respite from the endless digital stream of numbers.

"Listen to earnings calls, and investors can often hear right then and there about forward earnings and revenue guidance straight from the CFO's mouth," said Alex Coffey, senior trading and derivatives strategist at Schwab. "By listening to earnings calls, investors can gain valuable information that isn't always obvious in a company's financial reports."

Because the calls feature questions from analysts, they also offer investors a sense of what Wall Street is focused on, while also putting executives on the hot seat to respond to issues they might not address in more structured forums. While earnings calls are routine practice, what's said during them isn't always routine or expected by the market.

On rare occasions, earnings calls can even move a stock price dramatically, long after the earnings release crosses the wire and the market takes its first crack at interpreting results.

"I've seen companies report what appears to be good news—sales or earnings doubling, for example," Coffey said. "But after the markets open, shares drop like a rock because the company's forward guidance was weak, a company's leaders talked about greater uncertainty, or said they expect a more challenging environment."

Let's look at two historical examples of companies that wittingly or unwittingly shared information during their calls that caught the market off guard—Amazon (AMZN) and Caterpillar (CAT). In both cases, shares dropped dramatically after solid starts following decent earnings reports. Trouble under the surface only became apparent once the calls began.

In mid-2023, Amazon reported solid first-quarter numbers and shares jumped double digits ahead of the opening bell. Then the earnings call started, and everything changed. It all hinged on a comment from the company's chief financial officer (CFO), who told investors to get ready for much slower growth ahead for the company's cloud platform.

The stock plummeted quickly and gave back early gains. Anyone not on the call was left scratching their head. Those listening had a distinct advantage, especially if they were actively trading. The CFO's comments proved true as subsequent quarters played out.

In the other historical example from several years earlier, a Caterpillar executive said on the company's earnings call that first-quarter results represented the "high water mark" for the year, sending shares south. Nothing in the earnings release had prepared investors and analysts for that sort of outlook.

Most publicly traded U.S. companies list their earnings call information each quarter on the investor relations section of their website.

Quarterly earnings calls are actually webcasts, and attendees may need to register through the company's website to access them. They're usually held an hour or two before the U.S. stock market opens or after it closes (though sometimes they occur during regular trading hours).

Calls can last 30 minutes to an hour and are usually archived on the company's website for easy access later for investors who couldn't tune in live. Transcripts of the calls are frequently available online for free through companies themselves or third-party services, though investors typically have to wait a day or two.

It helps to have the company's earnings results up when joining the call so investors can be familiar with key numbers like gross margin, revenue, earnings per share (EPS), and any guidance.

Investors may also want to consider tracking the company's intraday, minute-by-minute share price on Schwab's thinkorswim^® platform as they listen. That way they'll be able to see if shares react to something said on the call.

Let's look at an example. Below is a price chart that tracked the intraday performance of a company's stock before its earnings report, over the next hour, and then during the earnings call. Note the volatility during the call when executives mentioned certain subjects.

When the call begins, attendees will be in "listen only" mode. Typically, only industry analysts are allowed to ask questions during Q&A sessions.

A typical earnings call starts with a "safe harbor" statement from the company's management, which alerts listeners that the discussion of financial results may include forward-looking statements, meaning estimates may materially differ from the actual results.

During the early part of the call, the CFO, the head of investor relations, or another company official will often recite directly from the just-announced results. They may discuss "core operating performance" and other complex financial terminology like EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), so having a glossary handy can help.

The chief executive officer (CEO) might offer a few remarks about the latest results, often congratulating employees for their outstanding "execution" in a good quarter.

The first 15 to 30 minutes of the earnings call may not seem like earth-shaking "news," but investors should pay close attention. What they hear could help them make a well-informed, long-term investing decision—or help avoid a bad investment.

The company's previous quarterly earnings reports are already in the books, and the latest results are likely already factored into its stock price (or will be soon). But by listening carefully to what executives say during the call, investors can gain insight into what the future may hold for the company and its stock.

Companies often use earnings calls to update revenue and EPS projections for the current quarter or the full year, offering clues about their big-picture view of business and economic conditions. Shaving a few pennies off the full-year EPS estimate may not seem like much, but such moves can reflect underlying business reasons.

These prepared remarks are usually followed by a Q&A period, which is often when things can get interesting.

Sometimes the CEO will stray from the script and speak candidly or off the cuff about something with implications for the business or the stock price—say, buyout speculation or pressure from an activist investor.

Investors listening in might want to consider the "tone" of the call, both before and during the Q&A. Do executives seem less optimistic than they were a few months ago? Have sales slowed? Is a new product launch struggling? Have new competitors emerged? Have global economic trends adversely affected the company?

For a more recent example, oil's price spike in the spring of 2026 after Israel, Iran, and the United States entered into conflict had a sudden and unexpected macroeconomic effect on many companies. Transport firms heavily reliant on crude oil and natural gas were especially impacted.

Subsequent earnings calls can give investors a chance to hear more specifically about which parts of a company's business were affected, how it positioned them relative to competitors, and what they might be doing differently to handle the blow. One consideration is how these companies were positioned from an oil hedging standpoint as the war began, revealing how much they were exposed to the sudden price jump versus competitors. This isn't normally a subject that comes up between earnings or in a press release, but it certainly could be a topic analysts ask about on the call.

That's when having thinkorswim open to track the stock price comes in handy. Many short-term traders also listen to earnings calls, so following an earnings call "blow by blow" via an intraday chart can provide an idea of what market professionals consider key issues for a company. Executive comments on profit outlooks or other matters can move the stock price, even if it's just for a few seconds.

During the Q&A sessions, questions typically come only from analysts at big Wall Street banks or investment shops. These analysts often follow multiple companies in a specific industry, which means they track the company that is reporting as well as the company's top competitors (investors should check for any analyst rating changes after the call).

Be alert for particularly pointed questions, or the same questions asked more than once. If the CEO hesitates or regurgitates something from the press release, that may be worth noting.

"If analysts come back with repeated questions about something, that subject may be an area of concern," Coffey noted.

He also suggested keeping ears open for comments on other earnings-related matters like write-offs, which are usually one-time hits to profits. These comments can give investors a better sense of how and why decisions were made and provide insight into executive thought processes.

"Writing off a business unit that was recently sold or divested isn't necessarily bad," Coffey explained. "But look at things like that in more detail. The shares may go up on news of a write-off because the company sold off a less-profitable, slower-growing business or because they're focusing more on core areas. It could help them in the future."