Earnings season has officially begun. Alcoa (AA) reported better-than-expected earnings on Friday which added 6% to the stock and helped push the Dow over 11,000. This is the perfect example of the power of earnings and this is precisely why we focus on quarterly financial reports.
With the season underway, it's time we look at earnings and sift through the details of our companies' financial reports due to come out in the next several weeks.
For those of you who need a quick refresher, there are four factors I watch when it comes to earnings. Staying focused on these four key variables will keep you on the right side of earnings and boost your profits. Here's a brief description of each: