This often happens. Earnings calls give a snapshot of the company, and there’s a lot of different data, that can be interpreted in a number of different ways. It’s a science…and an art.
Apple is a case in point—you could look at different aspects of the earnings call and take away completely different stories.
- Sales of iPhones and iPads are up over last year—great!
- Guidance on future profit margins did not meet analyst expectations—not so good.
- What are the possible new products?
- What are the expectations for holiday sales?
- What else is the company saying?
But, it takes a lot of time and energy—not to mention objectivity—to do that thorough work. And not just on one company, of course—on a full investment portfolio. Just reading the headlines and trying to jump on market bandwagons is not going to cut it.
That’s why it’s so important to engage a professional, who is looking at these stocks and companies day in and day out…so you don’t have to.
--Nick Asmus, Wade Financial Group Investment Department