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Why do some companies choose to report their earnings after the closing bell on Wall St.?

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bluestateguy Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-20-10 03:20 PM
Original message
Why do some companies choose to report their earnings after the closing bell on Wall St.?
Is it just a courtesy thing that they don't want to rattle the markets either way? Yet other companies do report earnings during the trading day. It doesn't seem to matter if the report is good or bad; it just seems that some companies prefer reporting earnings during the trading day, while others want to wait until 4PM or afterward. Any reason why?
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Lance_Boyle Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-20-10 03:22 PM
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1. I'm not familiar with any that report between 9:30 and 4 Eastern,
but it's sort of a moot point these days anyway - trading never stops.

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Nite Owl Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-20-10 03:24 PM
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2. Some do report before the open
I don't think it really matters much. It may be a matter of the conference calls that go on afterwards.
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SunnySong Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-20-10 03:26 PM
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3. Gives them an overnight period to digest the confrence call before trading "Opens"
Since trading is after market as well it is more a tradition than anything else.
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zipplewrath Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-20-10 03:27 PM
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4. To avoid gamesmenship
It's to avoid people trying to do trades based upon the minutes or seconds between when various people will find out. It's probably a bit of a dated practice at this point. But I'd bet it still avoid some "instant panic" trading and gives people a sense of time to at least partially digest information before making trades.
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